12 CFR §1026.18(f)(2) requires the following in regards to the Truth-in-Lending Disclosure:
“If the annual percentage rate may increase after consummation in a transaction secured by the consumer’s principal dwelling with a term greater than one year, the following disclosures:
(i) The fact that the transaction contains a variable-rate feature.”
For the past 10 years, DocuTech has included a checkbox with the verbiage “Variable Rate: Disclosures about the variable rate feature have been provided to you earlier” in its Truth-in-Lending Disclosure, allowing clients the
ability to indicate whether the loan contains a variable-rate feature.
In order to add more precision and clarity to this verbiage, particularly for borrowers, it will be changed to the following: “Variable Rate: This loan contains a variable rate feature. Disclosures about the variable rate feature
have been provided to you earlier.”
This change will take effect on April 6, 2012. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
April 5, 2012
DR 122424