LIBOR CFPB FAQ ARMs 12 – May information be added to the Periodic Statement to notify the consumer of the LIBOR transition for existing loans?

Compliance > Regulation Z - TILA > LIBOR Transition
Q:  May information be added to the Periodic Statement to notify the consumer of the LIBOR transition for existing loans?
 
A:   Generally, yes. Regulation Z, 12 CFR § 1026.41(c) requires that the disclosures in the Periodic Statement be written clearly and conspicuously. Adding information to the Periodic Statement is not prohibited, as long as the additional information does not “overwhelm or obscure” the required disclosures. Comments 41(c)-1 and -2. Sample form H-30(B) provides an example of how to add additional information.
 
For more information on mortgage Periodic Statement requirements from the Mortgage Servicing Rule, see Section 5 of the Mortgage Servicing Small Entity Compliance Guide.
 
 
This Q&A was created based on information from the Consumer Financial Protection Bureau’s website (which may be updated from time to time) that provides Answers to Frequently Asked Questions on the Transition Away from LIBOR.  This information may be found here:  https://files.consumerfinance.gov/f/documents/cfpb_libor-transition_faqs.pdf
 

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