The servicer of an ARM loan must notify the borrower before the effective date of any change to the mortgage loan interest rate or monthly payment in accordance with applicable law and the mortgage loan security instrument. When the interest rate and the monthly payment change at different intervals, separate notices are required for each change.
All ARM notices must comply with the disclosure requirements set forth in the TILA and the individual mortgage loan documents.
See below for related Q&A’s:
For more information please see: C-2.1-02: Notifying the Borrower Regarding Interest Rate and/or Payment Changes.