- Business Rules
The construction period interest rate may also differ from the start rate/initial rate. How is that seen on this form, if at all?If the interest rate may increase after consummation, a separate table under the master heading "Closing Cost Details" and under the heading "Adjustable Interest Rate (AIR) Table" that contains the following information is required:
- Index and margin. If the interest rate may adjust and the product type is not a "Step Rate" under paragraph (a)(10)(i)(B) of this section, the index upon which the adjustments to the interest rate are based and the margin that is added to the index to determine the interest rate, if any, labeled "Index + Margin."
- Increases in interest rate. If the product type is a "Step Rate" and not also an "Adjustable Rate" under paragraph (a)(10)(i)(A) of this section, the maximum amount of any adjustments to the interest rate that are scheduled and pre-determined, labeled "Interest Rate Adjustments."
- Initial interest rate. The interest rate at consummation of the loan transaction, labeled "Initial Interest Rate."
- Minimum and maximum interest rate. The minimum and maximum interest rates for the loan, after any introductory period expires, labeled "Minimum/Maximum Interest Rate."
- Frequency of adjustments. The following information, under the subheading "Change Frequency":
- The month when the interest rate after consummation may first change, calculated from the date interest for the first scheduled periodic payment begins to accrue, labeled "First Change"; and
- The frequency of interest rate adjustments after the initial adjustment to the interest rate, labeled, "Subsequent Changes."
Limits on interest rate changes. The following information, under the subheading "Limits on Interest Rate Changes":
- The maximum possible change for the first adjustment of the interest rate after consummation, labeled "First Change"; and
- The maximum possible change for subsequent adjustments of the interest rate after consummation, labeled "Subsequent Changes."
CFPB announcement regarding the delay of TRID
The full statement from CFPB Director Richard Cordray can be viewed here