Archives for February 2014

Protecting Consumers from Banks

New rules took effect in January protecting consumers from banks.  Interest rate adjustment notices for ARMs (adjustable rate mortgages) requires banks to provide a new initial rate adjustment notice to consumers.  This notice must include an estimate of the new interest rate and the amount of the payment that may be in effect once the ARM loan begins to adjust.  The notice must be sent between 210 and 240 days prior to the first payment that becomes due after the rate first adjusts.  Periodic ARM adjustment notices are required to be sent to consumers between 60 to 120 days before a payment at the new level is due.   Banks must also disclose additional prepayment penalty information