Early TIL Disclosures & ARM Loans

Question: When and what kind of early TIL disclosure should we give when the loan is an ARM and we have given the customer the ARM program disclosures? Or, do the ARM program disclosures meet the early disclosure requirement?

Answer: ARM program disclosures are in addition to the early TIL disclosure. So the answer is that you must give a complete early TIL to every applicant for an adjustable rate mortgage within three days of taking the written application.

The early TIL disclosures do not have quite the same timing rule as the ARM program disclosures. Lenders must give ARM program disclosures to the consumer when they give the consumer an application form or before the consumer pays a non-refundable fee, whichever is earlier.

The early TIL is given within three days of taking the application. It includes a reference to the fact that the customer has already received the ARM program disclosures.

Copyright © 1999 Compliance Action. Originally appeared in Compliance Action, Vol. 4, No. 4, 4/99