District Circular Letters
December 5, 1997
REGULATION Z:
VARIABLE-RATE DISCLOSURES
To Member and Nonmember Banks
and Others Concerned
in the Twelfth Federal Reserve District
Final Amendment Regarding Variable-Rate Disclosures (Docket R-0960)
The Federal Reserve Board has issued an amendment to its Truth in Lending
Regulation that gives creditors flexibility in providing variable-rate
disclosures.
The amendment applies to variable-rate loans with a term exceeding one
year and secured by the consumer's principal dwelling. It allows creditors
to provide a statement that the periodic payment may substantially increase
or decrease together with a maximum interest rate and payment based on
a $10,000 loan amount, in lieu of providing a fifteen-year historical
example of index values.
The revisions implement a provision of Regulatory Paperwork Reduction
Act of 1996 and are based on a proposal that was issued in January (see
our letter dated February 6, 1997). The revisions were effective November
21, 1997, but compliance is optional until October 1,
1998.
Copies
Copies of the Board's notice (Docket
R-0960) are available from our Corporate Services Department. To request
copies to be sent via mail, please call (415) 974-2748. To request copies
to be sent via fax, please call (415) 974-3333, and specify document number
4138.
Additional Information
For additional information regarding this matter, please contact our
Banking Supervision and Regulation Department, at (415) 974-2967.
FEDERAL RESERVE BANK OF SAN FRANCISCO
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