My question is about adjustable rate loans like the 5-1 or 7-1 ARM products where the initial rate and payment are fixed for the initial period, then adjust annually.

Are these types of ARM products considered irregular transactions and subject to the 0.25% tolerance or are they subject to 0.125%?

I am confuised by 226.19 and 226.22.

Thank you for your guidance.
regards,

If you search using +irregular +transaction and Richard Insley's user name you will find several discussions. Here's one to get you started.