12 CFR §1026.20 — Disclosure requirements regarding post-consummation events
Regulation Z §1026.20 governs post-consummation disclosures: refinancings, ARM rate-adjustment notices, the initial ARM adjustment notice, and the escrow cancellation notice.
Verbatim regulatory text
Verbatim provisions from 12 CFR §1026.20 — Disclosure requirements regarding post-consummation events — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
12 CFR §1026.20(a) — Refinancing as new transaction requiring new disclosures
(a) Refinancings. A refinancing occurs when an existing obligation that was subject to this subpart is satisfied and replaced by a new obligation undertaken by the same consumer . A refinancing is a new transaction requiring new disclosures to the consumer . The new finance charge shall include any unearned portion of the old finance charge that is not credited to the existing obligation . The following shall not be treated as a refinancing:
12 CFR §1026.20(c) — ARM rate adjustment notice (60-120 days before payment change)
(c) Rate adjustments with a corresponding change in payment. The creditor, assignee, or servicer of an adjustable-rate mortgage shall provide consumers with disclosures, as described in this paragraph (c), in connection with the adjustment of interest rates pursuant to the loan contract that results in a corresponding adjustment to the payment.
12 CFR §1026.20(d) — Initial ARM adjustment notice (210-240 days before first adjusted payment)
(d) Initial rate adjustment. The creditor, assignee, or servicer of an adjustable-rate mortgage shall provide consumers with disclosures, as described in this paragraph (d), in connection with the initial interest rate adjustment pursuant to the loan contract. To the extent that other provisions of this subpart C govern the disclosures required by this paragraph (d), those provisions apply to assignees and servicers as well as to creditors. The disclosures required by this paragraph (d) shall be provided as a separate document from other documents provided by the creditor, assignee, or servicer. The disclosures shall be provided to consumers at least 210, but no more than 240, days before the first payment at the adjusted level is due. If the first payment at the adjusted level is due within the first 210 days after consummation, the disclosures shall be provided at consummation.
12 CFR §1026.20(e) — Escrow account cancellation notice
(e) Escrow account cancellation notice for certain mortgage transactions —(1) Scope. In a closed-end consumer credit transaction secured by a first lien on real property or a dwelling , other than a reverse mortgage subject to § 1026.33 , for which an escrow account was established in connection with the transaction and will be cancelled, the creditor or servicer shall disclose the information specified in paragraph (e)(2) of this section in accordance with the form requirements in paragraph (e)(4) of this section, and the timing requirements in paragraph (e)(5) of this section.
12 CFR §1026.20(a) — Refinancing as new transaction requiring new disclosures — enumerated items (chapeau recall fix)
(1) A renewal of a single payment obligation with no change in the original terms. (2) A reduction in the annual percentage rate with a corresponding change in the payment schedule. (3) An agreement involving a court proceeding. (4) A change in the payment schedule or a change in collateral requirements as a result of the consumer 's default or delinquency , unless the rate is increased, or the new amount financed exceeds the unpaid balance plus earned finance charge and premiums for continuation of insurance of the types described in § 1026.4(d) . (5) The renewal of optional insurance purchased by the consumer and added to an existing transaction, if disclosures relating to the initial purchase were provided as required by this subpart.