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15 U.S. Code § 1637a. Disclosure requirements for open end consumer credit plans secured by consumer’s principal dwelling
(a) Application disclosuresIn the case of any open end consumer credit plan which provides for any extension of credit which is secured by the consumer’s principal dwelling, the creditor shall make the following disclosures in accordance with subsection (b):
(1) Fixed annual percentage rate
Each annual percentage rate imposed in connection with extensions of credit under the plan and a statement that such rate does not include costs other than interest.
(2) Variable percentage rateIn the case of a plan which provides for variable rates of interest on credit extended under the plan—
(A)
a description of the manner in which such rate will be computed and a statement that such rate does not include costs other than interest;
(B) a description of the manner in which any changes in the annual percentage rate will be made, including—
(i)
any negative amortization and interest rate carryover;
(ii)
the timing of any such changes;
(iii)
any index or margin to which such changes in the rate are related; and
(iv)
a source of information about any such index;
(C) if an initial annual percentage rate is offered which is not based on an index—
(i)
a statement of such rate and the period of time such initial rate will be in effect; and
(ii)
a statement that such rate does not include costs other than interest;
(D)
a statement that the consumer should ask about the current index value and interest rate;
(E)
a statement of the maximum amount by which the annual percentage rate may change in any 1-year period or a statement that no such limit exists;
(F)
a statement of the maximum annual percentage rate that may be imposed at any time under the plan;
(G)
subject to subsection (b)(3), a table, based on a $10,000 extension of credit, showing how the annual percentage rate and the minimum periodic payment amount under each repayment option of the plan would have been affected during the preceding 15-year period by changes in any index used to compute such rate;
(H) a statement of—
(i)
the maximum annual percentage rate which may be imposed under each repayment option of the plan;
(ii)
the minimum amount of any periodic payment which may be required, based on a $10,000 outstanding balance, under each such option when such maximum annual percentage rate is in effect; and
(iii)
the earliest date by which such maximum annual interest rate may be imposed; and
(I)
a statement that interest rate information will be provided on or with each periodic statement.
(3) Other fees imposed by the creditor
An itemization of any fees imposed by the creditor in connection with the availability or use of credit under such plan, including annual fees, application fees, transaction fees, and closing costs (including costs commonly described as “points”), and the time when such fees are payable.