Question

What disclosures must be made under the adjustable interest rate disclosure requirements?

What disclosures must be made under the adjustable interest rate disclosure requirements?

Business   Operations-Management   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Disclosures to be made under the adjustable interest rate disclosure requirements

  • A disclosure statement which the Federal Reserve Board prescribes and which is signed by the borrower
  • A notice which must be send by the lender to the borrower at least three weeks before the interest change date

The notice must include:

  • Previous year interest rates, governing index and monthly payments
  • Current index value, new interest rate and monthly payments, loan margin
  • An explanation of the calculation of new interest rate.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Drag and drop the appropriate words to complete, Disclosure Requirements for Franchisor Under the FTC’s Franchise...
Drag and drop the appropriate words to complete, Disclosure Requirements for Franchisor Under the FTC’s Franchise Rule.. a. Written or electronically recorded disclosures treating the range of goods and services included in the value and estimated ___ of the franchise. b. To prevent deception, all representations made to prospective franchisees must have a ___ basis at the time they are made. c. If a franchisor provides projected earnings, the franchisor must indicate whether they are based on ___ data or...
This problem requires you to research the disclosure requirements for fixed assets using the FASB Codification...
This problem requires you to research the disclosure requirements for fixed assets using the FASB Codification at www.fasb.org. Access to the FASB Codification requires that your educational institution be enrolled in the FASB academic access program or provides access through a third-party provider. a. Identify the section in the FASB Codification that addresses property, plant and equipment, and the sub- section that provides disclosure requirements b. Indicate the disclosures for fixed assets that should be made in the financial statements...
what is interest rate risk and what does this have to do with adjustable rate mortgages?
what is interest rate risk and what does this have to do with adjustable rate mortgages?
What must a lender provide to a prospective borrower who is obtaining an Adjustable Rate Mortgage?...
What must a lender provide to a prospective borrower who is obtaining an Adjustable Rate Mortgage?             a. An educational brochure about ARMs b. An historical example how payments on a $10,000 loan would have changed in response to actual past historical data on the index to be applied. c. The payment amount on a $10,000 loan at the initial interest rate, and the maximum possible interest rate that could apply to the loan during its term. d. All of...
Explain the legal requirements that must be satisfied for a company to pay dividends, under the...
Explain the legal requirements that must be satisfied for a company to pay dividends, under the Corporations Act 2001
Discus why Interest rate is viewed as a key barometer as well as an “adjustable knob”...
Discus why Interest rate is viewed as a key barometer as well as an “adjustable knob” in the financial world, where the variable is a key indicator but also a parameter that may be regulated to attain the desired economic effects.
what are examples of when a fixed rate loan is preferred and when an adjustable rate...
what are examples of when a fixed rate loan is preferred and when an adjustable rate loan migh be preferred?
What are the requirements for modifications under the UCC?
What are the requirements for modifications under the UCC?
Alex Dunphy borrows $26,000 to pay for her Caltech’s tuition. The adjustable rate loan carries a...
Alex Dunphy borrows $26,000 to pay for her Caltech’s tuition. The adjustable rate loan carries a 6% annual percentage rate for the first 5 years. After that the rate will be adjusted downward to 3% annually to reflect market conditions. The loan term is 20 years and payments are made monthly. What is the monthly payment after interest rate resets to 3%? Please show work!
Alex Dunphy borrows $26,000 to pay for her Caltech’s tuition. The adjustable rate loan carries a...
Alex Dunphy borrows $26,000 to pay for her Caltech’s tuition. The adjustable rate loan carries a 6% annual percentage rate for the first 5 years. After that the rate will be adjusted downward to 3% annually to reflect market conditions. The loan term is 20 years and payments are made monthly. What is the monthly payment after interest rate resets to 3%? Please show work
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT