Question

For most ARMs, rate/payment change disclosures must be provided no less than ____ days and no more than ___ days prior to the R change.

Answer 1

Disclosures for ARMs must be provided at least 210 days before and not more than 240 days prior to rate changes, impacting homeowners' payments.

Step-by-step explanation:

For most Adjustable Rate Mortgages (ARMs), rate/payment change disclosures must be provided no less than 210 days and no more than 240 days prior to the rate change. Homeowners with ARMs initially benefit from lower rates but can be caught off-guard when rates climb, leading to significantly higher monthly payments. This was a major issue during the housing crisis when many were unable to afford the new payments and defaulted on their loans, leaving banks with properties worth less than the mortgage.