Truth in Lending, Solvency II Fears, Fed: Compliance

The Federal Reserve released a revision to a Truth in Lending Act rule approved in September, aiming to clarify how lenders are required to disclose changes in interest payments for adjustable-rate mortgages.

Companies offering so-called interest-only ARMs must tell borrowers the earliest date their interest rate can change, the Fed said yesterday in a statement outlining the revision. Lenders had been required to disclose the date of the first payment after a rate change, not the adjustment date, the Fed said.