ARM Loan Guidelines on Second Residence

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Question:

Are there any specific guidelines regarding an ARM loan for a second residence?

Answer:

If the loan is still a consumer purpose loan secured by a second residence with an adjustable rate, it will be subject to the variable rate provisions of Reg Z in 226.18(f) but not to the ARM requirements under 226.19(b).

First published on BankersOnline.com 7/20/09