In the mid-1980s a movement began among the federal supervisory agencies to produce a uniform ARM regulation. In 1988, the Federal Reserve Board added the uniform ARM disclosure requirements to a regulation. Therefore, most of the original OCC ARM consumer protection requirements are now found in this new regulation. Adjustable rate mortgage loans made by national banks may be subject to the OCC's ARM regulation or the requirements of this new regulation, or both. This new regulation is:
Click on the arrows to vote for the correct answer
A. B. C. D.AB
The new regulation that includes uniform ARM disclosure requirements and incorporates most of the original OCC ARM consumer protection requirements is Regulation Z. Regulation Z is a regulation issued by the Federal Reserve Board pursuant to the Truth in Lending Act (TILA), which was enacted in 1968 to promote the informed use of consumer credit by requiring disclosures about its terms and cost.
Regulation Z applies to all entities that offer consumer credit, including banks, credit unions, and other lenders. The regulation includes various disclosure requirements for different types of credit transactions, including closed-end loans (such as mortgages) and open-end lines of credit (such as credit cards).
For adjustable rate mortgage (ARM) loans made by national banks, they may be subject to both the OCC's ARM regulation and Regulation Z. The OCC's ARM regulation provides specific requirements for national banks offering ARM loans, while Regulation Z provides more general disclosure requirements that apply to all lenders.
Overall, Regulation Z is an important regulation for protecting consumers who use credit, including those who obtain ARM loans. It helps ensure that consumers receive clear and accurate information about the costs and terms of credit, so that they can make informed decisions and avoid potentially harmful or unfair lending practices.