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FEDERAL RESERVE B A *
OF NEW YORK
No. 10221 1
January 12, 1988
[ Circular

TRUTH IN LENDING
Amendment to Regulation Z Regarding Adjustable Rate Mortgages
To All Depository Institutions, and Others Concerned,
in the Second Federal Reserve District:

On January 8, we sent you a circular (Cir. No. 10220) requesting com m ent on proposed
changes in the O fficial Staff Com m entary on Regulation Z o f the Board o f Governors o f the Federal
Reserve System that would offer guidance to creditors in com plying w ith the provisions o f an
am endm ent to R egulation Z (Truth in Lending). Enclosed is a copy o f the text o f the am endm ent to
Regulation Z , effective D ecem ber 2 8 ,1 9 8 7 , w hich has been reprinted from the Federal Register. In
subm itting the am endm ent for publication in the Federal Register , the B oard o f G overnors issued
the follow ing statement:
The Federal Reserve Board has adopted an amendment to its Regulation Z, Truth in Lending, that
will require creditors to provide consumers with more extensive information about the variable-rate fea
ture of closed-end adjustable rate mortgages (ARMs), with longer than a one-year maturity, which are
secured by the consumer’s principal dwelling. The Board’s final rule becomes effective October 1,1988
but creditors may comply immediately.
The Board’s amendment requires creditors to provide consumers with a more detailed description
of the variable-rate feature. An historical example that shows the effect that actual changes in index
values would have had on payments on a $10,000 loan must be given to the consumer. And, creditors
must provide a statement of the initial and maximum interest rates and payments for a $10,000 loan
originated at the most recent interest rate shown in the historical example.
The amendment to the regulation also requires that prospective borrowers be given an educational
brochure about ARMs, either The Consumer Handbook on Adjustable Rate Mortgages published by the
Board and the Federal Home Loan Bank Board, or a suitable substitute.
All of this information must be given to the consumer at the time an application form is provided or
before the consumer pays a nonrefundable fee, whichever is earlier.
Single copies of The Consumer Handbook on Adjustable Rate Mortgages, referred to in the
above statem ent, will be sent to depository institutions in this District as soon as they are m ade
available to us by the B oard of Governors. Additional copies o f the Handbook m ay be obtained from
the B oard for a sm all fee; for inform ation regarding those charges you should call the B oard’s Publi
cations Section (Tel. No. 202-452-3244).
Questions regarding this m atter may be directed to our C om pliance Exam inations D epartm ent
(Tel. No. 212-720-8136). Additional copies o f this enclosure, or o f the earlier proposal, will be
furnished upon request directed to the Circulars D ivision o f this Bank (Tel. No. 212-720-5215 or
5216).
E. G erald C orrigan ,

President.

Board of Governors of the Federal Reserve System

TRUTH IN LENDING
AM EN D M EN T TO REG U LA TIO N Z

(effective Decem ber 28, 1987)

burden of duplicative federal
regulations.
IFFIECTBV1 ©ATI: December 28,1987, but
optional compliance until October 1,
1988.

the regulations of two other federal
financial agencies and the Department
12 CFR Part 22®
of Housing and Urban Development
(HUD) call for more extensive, detailed
[Reg. £ Docket No. B-©54Sj
information. The Federal Home Loan
Bank Board (FHLBB) requires variableT ru th In b in d in g ; VariabS@=Rat®
P©d PUP5TOIP? information:
rate disclosures for federally-chartered
DSseSQsur© Uncior R©guSatl@in) 2
Contact Michael S. Bylsma, Senior
savings and loan associations and also
Attorney, or Sharon T. Bowman or
for certain other lenders that wish to
A©ENCV: Board of Governors of the
Thomas J. Noto, Staff Attorneys,
market their loans to federally-chartered
Federal Reserve System.
Division of Consumer and Community
savings
and loans (12 CFR 545.33). The
AeY8©N: Final rule.
Affairs, Board of Governors of the
Office of the Comptroller of the
Federal Reserve System, Washington,
Currency (OCC) mandates variable-rate
DC, 20551, (202) 452-3667 or (202) 452disclosures for national banks and other
2412. For the hearing impaired only,
summary: The Board is publishing a
lenders that seek to market their loans
final rule amending Regulation Z (Truth Telecommunications Device for the Deaf to national banks (12 CFR Part 29).
(TDD), Earnestine Hill or Dorothea
in Lending) to require creditors to
Under the “Alternative Mortgage
Thompson, at (202) 452-3544.
provide more information about the
Transaction Parity Act of 1982" (12
variable-rate feature of closed-end
SUPPLEMENTARY INFORMATION:
U.S.C. 3802), state-chartered institutions
adjustable-rate mortgages than is
and other mortgage lenders may take
Background
currently required under Regulation Z.
advantage of federal authorization of
For some time the Board has been
The amendments require creditors to
ARMs by following the rules of the
working with the other federal financial FHLBB or the OCC. Finally, HUD
distribute to consumers an educational
regulatory agencies to develop a uniform prescribes disclosures for lenders
booklet about adjustable-rate
set of disclosures for adjustable-rate
mortgages, and to provide a more
wishing to participate in the Federal
detailed description of the variable-rate mortgages (ARMs). This effort arose
Housing Administration (FHA)
because of concern about the different
feature, along with an historical
insurance program (24 CFR Parts 203
disclosure requirements imposed by the and 234).
example. The information must be
The federal financial agencies believe
provided at the time an application form various federal agencies. Currently, four
federal agencies require that lenders
that this regulatory structure, which
is given to the consumer or before the
subject to their regulations provide
consumer pays a non-refundable fee,
requires different disclosures by
different lenders delivered at different
whichever is earlier. These revisions are specific disclosures about ARMs to
times, is causing problems for both
intended to address concerns regarding borrowers. Under Regulation Z, the
Board requires that a variable-rate
the adequacy of information given to
consumers and mortgage lenders. The
feature be described briefly to
ability of consumers to understand and
consumers applying for adjustable-rate
consumers. In contrast to Regulation Z,
make important decisions about ARMs
mortgages and regarding the creditor
FEDERAL RESERVE SYSTEM

PRINTED IN NEW YORK, FROM FEDERAL REGISTER, VOL. 52, NO. 247, pp. 48665-48673

For this Regulation to be complete, retain:
1) Regulation Z pamphlet, revised effective April 1, 1981.
2) Amendments effective December 3, 1981f April 1, 1982, October 1,
1982, December 31, 1984, April 4, 1985, and December 16, 1986
(p r in te d in s lip s h e e t d a te d A p r il 1 9 8 7 ; a ls o in c lu d e s a m e n d m e n ts to th e
T ru th in L e n d in g A c t).

3) Amendment effective December 9, 1987.
4) This slip sheet.
F u r n is h e d on r e q u e s t —
5) Official Staff Commentary, effective October 16, 1984.
6) Amendments to the Official Staff Commentary (s lip s h e e t
1 9 8 7 ).

[Enc. Cir. No. 10221]

d a te d A p r il

before entering into these transactions
may be hampered by their receipt of
different information about ARM
programs depending on what type of
lender they have approached. This
problem is exacerbated by the variety of
ARM products now being offered as
well as the complexity of some of these
programs. At the same time, these
regulatory requirements have proven
burdensome to the mortgage industry,
particularly when mortgage lenders .
must satisfy more than one regulation in
order to take full advantage of the
secondary market. Under certain
circumstances, lenders who wish to
originate mortgages for possible sale to
either a federal savings and loan
association or to a national bank may
have to make disclosures under two
agencies’ rules.
Revisions to federal ARM disclosure
requirements were initially requested by
members of Congress in a letter to the
Board in August 1984. The request called
for uniform federal requirements for
disclosures that include a “worst-case"
statement of the highest interest rate
and payment that might apply to an
ARM. The Board asked the Federal
Financial Institutions Examination
Council (FFIEC) to assist in developing a
recommendation for uniform
requirements for the federal agencies
with ARM disclosure regulations. After
extensive deliberations by an FFIEC
task force, the FFIEC made an initial
recommendation to the Board in
November 1984. As outlined by the
FFIEC, the required disclosures would
be specific to each consumer’s
transaction and include a “worst-case"
payment example based on hypothetical
index rate increases of two percentage
points per year for three years. Based on
these recommendations, the Board
proposed amendments to Regulation Z
on May 15,1985 (50 FR 20221). Many of
the Board’s 500 public comments on the
1985 proposal objected to both the
potential burden on creditors of
requiring transaction-specific
disclosures and to the assumptions
about index rate movement.
For more than a year following the
Board’s proposal of the initial disclosure
scheme, the FFIEC considered
alternative plans for uniform ARM
disclosures. In August 1986, the FFIEC
approved a proposal requiring that
creditors provide two types of
disclosures to consumers seeking
information about ARMs: (1) The
Consumer Handbook on Adjustable
Rate Mortgages, or a suitable substitute,
and (2) disclosures that fully describe
each of the creditor’s ARM programs,
with a 15-year historical example of how

changes in the index or formula values
used to compute interest rates.would
have affected interest rates and
payments on a $10,000 loan. In addition,
the maximum interest rate and payment
that could result under the program for
the $10,000 loan would be disclosed.
Based on the recommendations by the
FFIEC and its own analysis, the Board
on November 24,1986, again proposed to
amend Regulation Z (51 FR 42241). On
February 5,1987, the FHLBB proposed
amendments to its ARM disclosure
regulations which would require
disclosures identical to what the Board
proposed (52 FR 3665). The FHLBB
regulation, as proposed, would cover all
loans secured by borrower-occupied
property (including open-end equity
lines of credit.) Finally, on October 2,
1987, the OCC proposed to delete its
ARM disclosure regulation and to defer
to revised Regulation Z disclosure
requirements (52 FR 36953).
A total of 135 comments were
received during the 60-day period for
public comments on the Board’s
proposal. Generally, commenters
supported the concept of uniformity in
federal ARM disclosure regulations.
Most commenters also endorsed the
proposal to require disclosures based on
the features of the loan program but not
specific to an individual consumer’s
actual loan amount. On the other hand,
about one-fifth of the commenters
expressed general opposition to the
proposal. These commenters questioned
the need for expanded disclosure
requirements under Regulation Z and
stated that the disclosures would be
more costly to prepare and to distribute
than the existing disclosures. Many
commenters also maintained that the
coverage of the proposal was too broad.
For example, it was asserted that
compliance with the proposed advance
notice of interest rate adjustments
would be difficult with certain short
term loans such as bridge loans. It was
also argued that the 15-year index
history would not be meaningful to
consumers considering short-term loans,
and that the disclosures would be
difficult to prepare for loans that are
custom-tailored to an individual
consumer’s needs. Many commenters
suggested limiting coverage of the
amendments to purchase-money and
refinancing transactions which are
variable-rate and secured by the
consumer's principal dwelling. On the
other hand, several commenters
supported the coverage of the proposal.
Some commenters argued that the
proposed disclosures should also be
required for open-end home equity lines.
These commenters noted that home

equity plans have become more
prevalent since the Tax Reform Act of
1986 and impose great risks to
consumers whose homes are burdened
with such indebtedness. Other
commenters requested that creditors be
allowed to substitute the expanded
disclosures for the existing Regulation Z
ARM disclosures for all variable-rate
transactions, whether or not secured by
the consumer’s principal dwelling.
Many commenters favored the
requirement of an example showing how
the payments and loan balance of a
$10,000 loan would have been affected
by historical changes in the index for a
15-year period. Other commenters
questioned the usefulness of the
historical information and argued that
the recent interest rate fluctuations
would not be repeated in the future.
Commenters also maintained that the
historical example would be
burdensome to prepare. Some
commenters recommended a shorter
example or even one based on
hypothetical index rate increases over a
short period. Some commenters,
particularly members of the thrift
industry, reversed their previously
stated opposition to an example based
on hypothetical rate increases and
recommended that form of example as a
substitute for the historical example.
Many commenters supported the
requirement that the maximum interest
rate and payment be stated. These
commenters argued that the statement
would be a useful supplement to the
historical example which might not
reflect a potential worst-case for the
loan in the future. HUD recommended
that the maximum payment be stated as
a schedule of payment increases
showing the initial and maximum
payments to correspond to its statutory
disclosure requirements. Other
commenters stated that the information
might portray ARMs in a highly negative
light. A few of these commenters
requested that the dicslosure show the
lowest rate and payment possible under
the program.
Finally, several commenters
addressed the proposed requirement for
advance notice of interest rate and
payment adjustments. The primary
criticism was that the advance notice
was required at least 30 days before the
effective date of an interest rate
adjustment and not before a payment at
the new level is due, as is currently
required by the OCC. The commenters
stated that this proposed requirement
would cause problems for lenders
offering 3hort-term ARMs that closely
track changes in the index values. Some
commenters recommended reducing the

number of days before an adjustment
that notice is required and clarifying
that notice should be given before a
payment at a new level is due.
After considering all of the comments,
the Board has made changes in the final
amendments designed to alleviate the
burden of compliance without
compromising the amount or detail of
information recommended by the FFIEC
to be disclosed to consumers. For
example, in response to the comments,
the Board has made a minor change to
the coverage of the amendments, a
modification of the requirement for a
statement of the maximum interest rate
and payment, and a change to the timing
of the adjustment notice requirements,
as explained below. Generally, the
Board has not adopted the other
changes suggested by commenters
which would substantially alter the
uniform disclosure provisions developed
by the FFIEC.

dwelling. Creditors who substitute the
disclosures under § 226.19(b) for the
disclosures ordinarily required under
| 226.18(f)(1) also must comply with the
requirements under § 226.18(f)(2),
although they need not complywith the
requirements under § 226.20(c). The
footnote does not permit substitution of
disclosures required under § 226.18(f)(1)
in transactions subject to § 226.19(b).
(Home equity lines, in which an openend line of credit is secured by the
consumer’s home, are not subject to the
new requirements, which apply only to
closed-end mortgages.) All other
consumer credit transactions that ’
contain a variable-rate feature would
continue to be subject to the existing
variable-rate disclosure requirements in
Regulation Z.
•
As recommended by the FFIEC, the
amendments will require that ARM
disclosures, including both the ARM
brochure and the other detailed ARM
information, be provided to prospective
Amendments to Regualtloa Z
borrowers when an application form is
Based on recommendations from the
furnished or before the payment of a
FIEC, the Board is adopting amendments non-refundable fee, whichever is earlier.
to Regulation Z to provide more
This rule will permit creditors to provide
information to consumers about
the detailed disclosures to consumers as
adjustable-rate mortgages. These
an insert to the ARM brochure when it is
amendments will require a handbook to given. Disclosure at this point in time is
be distributed to consumers, as well as
possible under the amendments because
detailed disclosures about a creditor’s
the new rule would require that
ARM loan programs. The new ARM
disclosures reflect ARM loan program
disclosure requirements have been
features, but not the terms of individual
added to the regulation at § 226.19(b)
transactions. Footnote 45b provides a
and § 226.18(f)(2) while new subsequent special timing rule (replacing the general
disclosure requirements for ARMs have timing rule) for cases where an ARM
been added at § 226.20(c).
application reaches a creditor by
The amendments apply to closed-end
telephone, or by way of an intermediary
credit transactions secured by the
agent or broker. In both such cases, both
consumer’s principal dwelling. This
the ARM brochure and the other
coverage includes purchase-money
detailed ARM information must be
mortgages, in which the consumer is
placed in the mail or delivered not later
obtaining a mortage loan for the purpose than three business days after the
of purchasing a home, as well as
creditor receives the consumer’s
transactions in which the consumer is
application. The proposed special timing
using the home as security for a loan. In rule for intermediary agents or brokers
response to comments received about
has been expanded to cover telephone
potential compliance problems for short applications in response to comments
term loans, an exemption from the new
discussing potential compliance
disclosure requirements has been
problems with the requirement of preprovided for transactions secured by the application disclosures for transactions
consumer’s principal dwelling with a
in which the application is made by
term of one year or less. These loans
telephone.
will continue to be covered by the
Under the new timing rule, the new
existing disclosure requirements of
variable-rate disclosures will be given to
| 226.18(f)(1) of Regulation Z.
consumers earlier than the standard
Footnote 43 will allow creditors to
Truth in Lending information required
substitute the new disclosures for any
by § 226.18. A sentence has been added
loan subject to the existing requirements to § 226.17(b) to cross-reference the
of § 226.18(f)(1) of the regulation. This
early timing requirements for ARMs. In
will allow creditors to treat all variable- addition, a new paragraph (f)(2) has
rate transactions the same without
been added to § 226.18 to require that
having to provide different disclosures
the later Truth in Lending disclosures be
depending on whether the loan is
revised to include a statement that an
secured by a consumer’s principal
adjustable-rate feature exists and that

the variable-rate disclosures have been
provided to the consumer.
A new paragraph (b)(1) requiring a
descriptive ARM brochure has been
added to § 226.19. The paragraph
requires that creditors give each
consumer a brochure when an
application form is given to a consumer
or before a consumer pays a nonrefundable fee, whichever is earlier. The
rule ensure that every consumer
considering applying for an ARM will
receive a brochure at an early stage in
the application process. The Consumer

Handbook on Adjustable Rate
Mortgages, developed by the Board and
the FHLBB, may be used by creditors to
fulfill this requirement if they choose.
The amendments would also permit
creditors to provide a “suitable
substitute” in place of the Consumer
Handbook. Rather than the Board’s
evaluating whether an individual "
creditor’s ARM brochure is a "suitable
substitute,” individual creditors should
make a good faith determination of
whether a brochure is, in fact, a suitable
substitute. The Board envisions that
substitutes must be, at a minimum,
comparable to the Consumer Handbook
in substance and comprehensiveness,
recognizing that some lenders’
brochures may contain more detailed
descriptions of their particular ARM
programs than contained in the

Consumer Handbook.
The Consumer Handbook has been
reprinted for resale by private
publications companies, and by various
trade organizations such as the
American Bankers Association, the
Mortgage Bankers Association, the
National Council of Savings Institutions
and the U.S. League of Savings
Institutions.
Amendments also have been made in
§ 226.19(b)(2). They required that
detailed, specific information about
major aspects of a variable-rate loan
program be clearly disclosed to
consumers. To illustrate the
requirements, sample form H-14 in
Appendix H of the regulation has been
revised, and model clauses have been
included in a revision to Appendix H-4.
Under the amendments, creditors will
be required to identify the index to
which interest rate changes are tied, or
provide a brief description of the
formula used in calculating changes if
no index is used. If the interest rate
changes are purely discretionary or are
made by an internally defined index, the
creditor will still need to describe the
method of rate changes or state that
they are discretionary. A source of
information about an index also must be
disclosed. For example, if index values

are listed in the Wall Street Journal,
creditors could make such a statement
in disclosing a source of information
about their index. The amendments call
for an explanation of how the interest
rate and payment will be determined,
for example, by a statement that the
interest rate will be based on a specified
index plus a margin and that the
payment will be based on the interest
rate, the loan balance, and the .
remaining loan term. Furthermore, *
creditors will be required to include a
j
statement suggesting that consumers ask
for the current margin value and interest
rate. The disclosures also will alert
consumers about a discount feature
when the initial rate is discounted and
will contain a statement suggesting that
consumers ask for the amount of the
applicable interest rate discount. In
addition, the frequency of rate and
payment adjustments will be disclosed,
along with rate and payment caps.
If the presence of rate or payment
caps would result in interest rate
carryover or negative amortization, the
-disclosure statement would need to
contain a statement about those
features. Two other disclosures must be
made: the fact that a loan program
contains a demand feature, if applicable,
and a statement describing the type of
information that will be contained in an
adjustment notice and when each notice
will be provided. Finally, creditors will
be required to include a notice to
consumers that disclosure forms are
available for the creditor’s other ARM
loan programs if the creditor has other
closed-end ARM programs subject to the
amendments.
One significant feature of the
amendments is the requirement of an
example, based on a $10,000 loan,
illustrating how payments and the loan
balance would have been affected by
historical changes in the index to be
used. Because the example will not be
based on the actual amount to be
borrowed, creditors will be able to pre
print the disclosures for each loan
program and give them to consumers
with an ARM handbook. The provision
that the example be based on the
historical performance of individual
indices, rather than on assumed rate
increases, reflects the revised
recommendation of the FFIEC. Creditors
also will be required to include a
statement on the disclosure form
explaining to consumers how to
calculate their actual monthly payment
amount for a loan amount other than
$10,000. The example based on $10,000
also reflects the recommendation of the
FFIEC, and is premised, in part, on the
rationale that Figures based on a $10,000

figures. Because disclosures will be
example provide information that „
given early, creditors will need to
consumers can use with minimal
difficulty to calculate their actual
assume a value for the margin in order
monthly payments for a specific
to do the calculations for the example.
Creditors-may select a margin that they
transaction. The amendments require
that the example shown be based on the have used during the preceding six
history of the specific index or formula months and disclose on the form that the
to be used In the loan program. The
margin is one that they have used
index values used in the example will . recently. The margin selected may be
begin with the value for 1977 and be
used until a creditor updates the
updated annually to add the values for j disclosure form t© reflect the most
additional years until a 15-year history . ! recent 15 years of index values.
is shown. For example, the disclosures | Similarly, to the extent that the ARM .■
for an ARM made in 1988 would include | program has a discounted initial rate,
index values for each year from 1977
creditors also will be permitted to
assume an amount by which the initial r
through 1987. In each subsequent year
rate will be discounted—which is
until 1991, a creditor’s disclosures will
representative of the amount of
include the index value for one more
discounts by the creditor during the ■ .
year. From that time forward, lenders
preceding six months—and disclose on
will show a “rolling" history of index
the form that the initial rate has been
values, updated annually, for the
preceding 15 years.
| discounted to the extent of other
j discounts.offered by the creditor
.
If the values for an. index have not
been available back t© 1977, creditors ' recently. The provision for a ■,.
need only go back as far as the values - representative discount was added to
have been available in giving the history respond to the concerns expressed by
and may start the example at the year in creditors about the need for individual
which values are available. The history program disclosure forms to reflect the
amount of every discount offered by the
should reflect the method of choosing
values for each program. For instance, if creditor—amounts which could fluctuate
daily depending upon market conditions..
an average of index values is used,
The amendments also require
averages would be used in the history,
but if a single index value is used, a
disclosure of the maximum interest rate
single index value would be shown. The and paym ent These disclosures would
creditor should assume one date within be calculated based on a $10,00® Jean
a year (or one period, if an average is
that is originated at the most recent
used) on which to base the history of
interest rate shown in the historical
index values for each loan program. The example, and would assume that the
creditor may choose to use index values interest rate then increases as rapidly as
as of any date or period as long as the
possible under the program. Thus,, in a
index value as of this date or period is
loan with interest rate limitations, or ...
used for each year in the index history. “caps,” of 2 percentage points per year,Only one index value per year need be and 5 percentage points for the life of shown, even if the program provides for the loan, the maximum Interest rate
adjustments to the interest rate or
would be 5 percentage points higher
payment more than once in a year. In
than the most recent rate shown in the
such cases, the creditor may assume
historical example. Furthermore, the
that the index rate remained constant
loan would not reach the maximum
for the full year for the purpose of
interest rate increase until the fourth
calculating the interest rate, payment,
year of the loan because of the 2
and loan balance. Updating will be
percentage points annual limitation.
necessary only once each year to reflect Consequently, the maximum payment
the most recent year’s index value. New disclosed would reflect the amortization
disclosures would be required when an of the loan during that period. Finally, to
ARM program changes. (To assist
enable FHA lenders to follow the new
creditors in constructing histories of
requirements, this provision has been =
certain common indices, the Board has modified also to require a statement of
included tables of index values inthe initial Interest rate and payment for
section 3 below.)
that loan. The Board believes that this
requirement will also benefit consumers
The payment and outstanding loan
by providing a point of reference for
balance figures in the example must
evaluating the stated maximum levels
reflect all significant loan program
for an ARM.
terms. For example, features such as
rate and payment caps, a discounted
The final amendments do not contain
interest rate, negative amortization, and the proposed requirement that ARMs
interest carryover need to be taken into without limitations on the maximum
account by creditors in calculating the increases in the interest and payment
payment and outstanding balance
contain a “conspicuous” statement to

that effect That provision Is no longer
necessary in light of section 1204 of the
Competitive Equality Banking Act of
1 9 8 Pub. L No. 1Q0-86, section 1204,
and the recent amendment to Regulation
Z, which require that all dwellingsecured ARM loans contain the
maximum interest rate that may apply
during the loan term.
As mentioned earlier, the ARM
disclosures given before application will
describe the type of Information that ‘
will be provided In notices ©f •
adjustments and the timing for such
notices. A paragraph also has been
added as 1220.20(c) to require a
subsequent disclosure form. The new
section will apply, except as provided in
footnote €3,' to all ARMS that have been
disclosed in accordance with the new ■■
1226.19(b) requirements. Regulation Z
does not currently require a subsequent
disclosure of rate and payment-changes,'
although the existing GCC, FHLBB, and
HUD regulations already require it. The
new paragraph requires notice of the ' '
adjusted payment amount, Interest rate,
index rate, and loan balance. The
creditor also will be required to disclose
the extent to which any increase in the
interest rate has-not been fully
implemented at the adjustment date (for
example, if the new index plus margin
would exceed an interest rate
adjustment cap), and the payment that
would be required to fully amortize a
loan (if different from the payment
already'disclosed). In transactions
providing that payment adjustments
may accompany interest rate
adjustments, creditors- would be

required to send borrowers notice at
least 25, but not more than 120, days
before the due date of a payment at the
new level. The final amendment differs
from the proposal which called for a
notice at least 30 days before the
effective date of each scheduled interest
rate adjustment The minimum advance
notice was revised to 25 days to track
the existing notice requirements of the
OCC and to provide creditors more
flexibility in giving adjustment notices
for the variety of loans that will be
subject to the new subsequent
disclosure requirements. At the same
time, the Board believes that the timing
of the disclosures still will provide •
consumers with adequate advance
notice of adjusted payment amounts.
The timing requirement was clarified to
refer to calendar days and a
requirement that the disclosures must be
delivered or placed ia the mail within
the specified period was added for
consistency with the requirements for
delivery of other disclosures, such as
when an application is made by
telephone or through an intermediary
agent or broker. Finally, the timing
provision was tied to the due date of the
payment at a new level rather than to
the effective date of the interest rate
adjustment. Notice is required to be
.given whenever interest rate
adjustments and corresponding payment
adjustments can be made periodically
under the loan agreement but are not
made because, for example, the Index
values have not changed or an interest
rate cap has prevented any such
adjustments. However, creditors are

required to send borrowers notice only
once each year If interest rate .
adjustments are made without a . ...
corresponding payment adjustm ent . ....
Thus, for example, in transactions
where the interest rate may be adjusted
more frequently than the paym ent the
creditor would be required to send at
least one notice each year during which
there have been interest rate
adjustments but no corresponding
payment adjustments.
Finally, footnote 43 to Regulation Z
has been retained and renumbered
footnote 45a. Retention of the footnote
will permit creditors who are required to
comply with variable-rate disclosure
regulations of other federal agencies to
substitute those disclosures for the
disclosures required under these
amendments. Because the FHLBB likely
will adopt disclosure requirements
identical m substance to the final
amendments to Regulation Z, certain
creditors will be permitted to give the
uniform ARM disclosures under FHLBB
rules without being required to make
identical disclosures under Regulation
Z. (As proposed the FHLBB regulations
would also require certain other
disclosures applicable to the ARM
relating to due-on-sale clauses, rate
changes and prepayment penalties,
escrow payments, call provisions, and
conditions of default. Because the
FHLBB proposal would permit FHLBB=
regulated institutions to purchase from
other unaffiliated lenders ARMs for
which only the uniform disclosures have
been made, the secondary market '
should not be affected by the FHLBB’s

Table 1.-—Constant Maturity Yield on United States Treasury S ecurities
Average for first week ending in January (percent
Year
____
__ ____________ . ■___
1977................................. . ...
1970.
1979
1980............................... ............. .............. ................................................... . ...........................
1981.
1982.
1983............................. ......................................................................
........
1984.
1985. ......... ......................................................
1986....................................' .....................
,

T a b l e 2 . — M is c e l l a n e o u s A R M In d i c e s
January
(per
cent)

Year

w buq

s© h

July
(per
cent}

3 Year

S02
7.03
10.51
12.02
13.86
13.03
8.62
10.02
0 19
7.63
5.97

5 Year

5.83
7.40
9.58
10.75
1281
14 09
9 65
11.04
10.58
8.25
8.54

11 Year

8.24
7.59
9.30
10.52
12.54
14 04
10.04
11.50
11.16
@50
6.79

3 Year

5.72
©.34
. S.44
8.51
*4.94
14 41
0.78
12.17
7.86
6.36
6.71

5 Year

6.32
0.51
0.70
9.15
14.58
14.81
10.47
13.38
8.98
8.99
7.72

3.63
8.50
0.73
9.47
14.28
14.73
10.80
13.67
9.53
7.21
7.80

T a b l e 2 .— M i s c e l l a n e o u s A R M I n d i c e s —

C o n t in u e d

C o n t in u e d
January
(percant}

Year

July
(parcent)

Year

January
(percent}

July
(percent)

s-m js yiistsra

institution©
1977....................... ............................
1978..... .........................._________ ____ _
1979....................... .....................................
1980...-.............................................. ........
1931........................ ...... ................ ..........
1982...................... ......................................

Average for first weak ending in July
1 Year

aa
sm
n.a
8.78
10.45
11.95

1983............................................. _...........
1984................ .... ......................................
aa.
aa.
n.a.
9.67
11.85
12.23

10.46
10.03

9.68
10.71

7.40

7.28

0. National Average e© «tra«t Interest Rato Per KJaSey
Londaro m tha (Pureftaco @5 ProvteuaSy O ccupied H®moo

1978
1979

1981..................... ....................... .............

@95
10 08

9.41
10 67

13.24

14.77

Semiannual Penod

Quarterly Period
Year

April—
June

January—
March

July—
September

October—
December

January—
June

Juty—
December

D. National Average Coat of Funds Ratio to FSLIC-lnaured Institutions (percent)

1977
'
•
_
1978.................................................................. ..................................................... ....................................................
1979............................................................................................................................................................................
1980................................................................................................................................................ ...........................
1981................................................................... ............................................................... .........................................
1982...... :........:...........................................................................................................................................................
1983...............„...........................................................................................................................................................
1984.............................................................................................................................................................................
1985............................................................................................................................................................................
1986............................................................................................................................................................................
1987.................................................... .....................................................................................................................

retention of these additional
disclosures.) The footnote will also
benefit lenders originating ARMs
insured by the Federal Housing
Administration, which has not yet
adopted the uniform requirements.
Furthermore, FHA lenders may continue
to take advantage of the footnote at the
time HUD amends its ARM disclosure
requirements to adopt the uniform
requirements.
Creditors also will be permitted to
utilize the subsequent disclosure
requirements of other federal agencies
in place of the subsequent disclosure
requirements of § 226.20(c). The FHLBB
likely will adopt subsequent disclosure
requirements identical to those required
under § 226.20(c), A new footnote 45c
has been added to permit this
substitution. Changes have also been
made to Appendix H by redesignating
model clause H-4 as H-4(A); adding
model clauses H-4(B), H-4(C) and H4(D), and substituting sample form H-14
with a new form. (The official staff
commentary interpreting these
regulatory changes is being published
for comment in this issue of the Federal
Register.)

9.74
9.58
8.49
7.11

maturities of 1, 3, and 5 years. Weekly
average values are provided as of the
first week ending in January and in July.
Table 2 provides the January and July
monthly average values for three other
indices— the Cost of Funds Ratio to 11th
Federal Home Loan Bank District
Institutions, the National Average
Contract Interest Rate for Major Lenders
on the Purchase of Previously Occupied
Homes, and the National Monthly
Median Cost of Funds Ratio to FSLICInsured Institutions. It also includes the
semiannual and quarterly average
values for the National Average Cost of
Funds Ratio to FSLIC-Insured
Institutions. Years in which index values
were not available are marked “n.a.”
(Creditors need not use these tables in
constructing their index histories.
Furthermore, the dates used in these
tables were selected merely to provide
index values at two or more points
within each year. Creditors may choose
to use the applicable index values in
these tables even if index values as of
another date are used in their ARM
program.)
Economic Impact Statement

The Board’s Division of Research and
Statistics has prepared an economic
To assist creditors in constructing
impact statement on the proposed
histories of various indices used in their revisions to Regulation Z. A copy of the
ARM programs, the Board has prepared analysis may be obtained from
tables of values for common indices for Publications Services, Board of
the years 1977-1987. Table 1 provides
Governors of the Federal Reserve
System, Washington, DC. 20551, at (202)
the values for United States Treasury
452-3245.
securities adjusted to constant

Tables of Certain Index Values

n.a.
aa.
n.a.
n.a.
n.a.
9.80
9.35
8.21
7.06

n.a.
n.a.
n.a.
n.a.

n.a.
n.a.
aa.
n.a.
10.27
9.04
7.99

n.a.
n.a.
n.a.
n.a.
n.a.
10.31
8.79
7.53

6.39
6.54
7.23
8.77
10.31
11.49
9.81
9.77
9.47
8.35
7.09

6.48
6.79
7.71
9.11
11.53
11.27
9.84
10.29
8.92
7.76

List of Subjects in 12 CFR Part 226
Advertising, Banks, banking,
Consumer protection, Credit, Federal
Reserve System, Finance, Penalties,
Rate limitations. Truth in lending.
For reasons set out in this notice, and
pursuant to the Board’s authority under
section 105 of the Truth in Lending Act
(15 U.S.C. 1604 as amended), the Board
amends Part 226 as follows:
PART 226—TRUTH IN LEMDSNG
1. The authority citation for Part 226
continues to read as follows:
Authority: Sec. 105. Truth in Lending Act,
as amended by sec. 605. Pub. L. 96-221, 94
Stat. 170 (15 U.S.C. 1604 e t s e q .); sec. 1204(c),
Competitive Equality Banking Act, Pub. L.
100-86,101 Stat. 552.

2. Section 226.17 is amended by
revising paragraph (b) to read as
follows:
§ 226.17

General disclosure requirements.

(b) Time o f disclosures. The creditor
shall make disclosures before
consummation of the transaction. In
certain residential mortgage
transactions, special timing
requirements are set forth in § 226.19(a).
In certain variable-rate transactions,
special timing requirements for variablerate disclosures are set forth in
§ 226.19(b) and § 226.20(c). In certain
transactions involving mail or telephone
orders or a series of sales, the timing of

reflect the most recent 15 years of index
a n irregular transaction, as defined in
values. The example shall reflect all
| 226.22, the creditor shall disclose the
significant loan program terms, such as
changed terms no later than
6
a
$
A
negative amortization, interest rate
consummation or settlem ent
carryover, interest rate discounts, and
(b)
Certain variable-rate
3. Section 226.18 is amended by
revising footnote 43 and paragraph (f) to transactions.45Q If the annual percentage interest rate payment limitations, that
rate may increase after consummation
would have been affected by the index
read as follows:
in a transaction secured by the
movement during the period.
consumer’s principal dwelling with a
(ix) An explanation of how the
§ 226.18
@ff disclosures.
*
*
*
*
*
term greater than one year, the following consumer may calculate the payments
disclosures must be provided at the time for the loan amount to be borrowed
(f) Variable rate. (1) If the annual
an application form is provided or
based on the most recent payment
percentage rate may increase after
before
the
consumer
pays
a
nonshown in the historical example.
consummation in a transaction not
(x) The maximum Interest rate and
refundable fee, whichever is earlier:45b
secured by the consumer’s principal
(1) The booklet titled Consumer
payment for a $10,000 loan originated at
dwelling or in a transaction secured by
the most recent interest rate shown in
the consumer’s principal dwelling with a Handbook on Adjustable Rate
Mortgages published by the Board and
the historical example assuming the
term of one year or less, the following
the
Federal
Home
Loan
Bank
Board,
or
a
maximum
periodic increases in rates
disclosures:43
suitable substitute.
and payments under the program; and
(i) The circumstances under which the
(2) A loan program disclosure for each the initial interest rate and payment for
rate may increase.
variable-rate program in which the
that loan.
(ii) Any limitations on the increase
consumer expresses an interest. The
(xi) The fact that the loan program
(iii) The effect of an increase.
following disclosures, as applicable,
contains a demand feature.
(iv) An example of the payment terms shall be provided:
. (xii) The type of information that will
(i) The fact that the interest rate, that would result from an increase.
be provided in notices of adjustments
. (2) If the annual percentage rate may payment, or term of the loan can change. ■and the timing of such notices.
(ii) The index or formula used in
(xiii) A statement that disclosure
increase after consummation in a
making adjustments, and a source of
forms are available for the creditor’s
transaction secured by the consumer’s
information about the index or formula. other variable-rate loan programs.
principal dwelling with a term greater
(iii) An explanation of how the
0.
’S ection 226.20 is amended by
than one year, the following disclosures:
interest rate and payment will be
adding paragraph (c) to read as follows: •
(1) The fact that the transaction
determined, including an explanation of
contains a variable-rate feature.
§ 226.20 Subsequent disclosure
how the index is adjusted, such as by
(ii) A statem ent that variable-rate .
requirements.
the addition of a margin. is
it
it
it
it
disclosures have been provided earlier.
(iv)
A
statement
that
the
consumer
*
*
-*
*
it
(c)
Variable-rate adjustments.45£ An
should ask about the current margin
adjustment to the interest rate with or
value and current interest rate.
§ 226.22 [Amended!]
without a corresponding adjustment to
(v) The fact that the interest rate will
4. Section 226.22 is amended by
be discounted, and a statement that the the payment in a variable-rate
redesignating footnote 45a as 45d.
transaction subject to § 226.19(b) is an
consumer should ask about the amount
5. Section 226.19 is revised to read as of the interest rate discount.
event requiring new disclosures to the.
follows:
(vi) The frequency of interest rate and consumer. At least once each year
during which an interest rate adjustment
payment changes.
§ 226.1 S (Sestain rtgssdtetmfei mortgage and
(vii) Any rales relating to changes in
is implemented without an
variable-rate transactions.
the index, interest rate, payment
accompanying payment change, and at
(a)
R e sid en tia l mortgage transactionsamount, and outstanding loan balance
least 25, but no more than 120, calendar
subject to RESPA. —(1) Tim e o f
including, for example, an explanation
days before a payment at a new level is
disclosures. In a residential mortgage
of interest rate or payment limitations,
due, the following disclosures, as
transaction subject to the Real Estate
negative amortization, and interest rate applicable, must be delivered or placed
Settlement Procedures Act (12 U.S.C.
carryover.
in the mail:
2601 e t seq.) the creditor shall make
(viii) An historical example, based on
(1) The current and prior interest
good faith estimates of the disclosures
a $10,000 loan amount, illustrating how
rates.
required by § 226.18 before
payments and the loan balance would
(2) The index values upon which the
consummation, or shall deliver or place have been affected by interest rate
current and prior interest rates are
them in the mail not later than three
changes implemented according to the
based.
business days after the creditor receives terms of the loan program. The example
(3) The extent to which the creditor
the consumer’s written application,
shall be based upon index values
has foregone any increase in the interest
whichever is earlier.
beginning in 1977 and be updated
rate.
(2) R edisclosure required. If the
annually until a 15-year history is
(4) The contractual effects of the
annual percentage rate in the
shown. Thereafter, the example shall
adjustment, including the payment due
consummated transaction varies from
after the adjustment is made, and a
the annual percentage rate disclosed
statement of the loan balance.
4
8
0
Information provided in accordance with
under § 226.18(e) by more than Vs of 1
(5) The payment, if different from that
variable-rate regulations of other federal agencies
percentage point in a regular transaction may be substituted for the disclosures required by referred to in paragraph (c)(4) of this
or more than lA of 1 percentage point in paragraph (b) of this section.
disclosures may be delayed in
accordance with paragraphs (g) and (h)
of this section.

Information provided in accordance with
i§ 226.18(f)(2) and 226.19(b) may be substituted for
the disclosures required by paragraph (f)(1 ) of this
section.
43

486Disclosures may be delivered or placed in the
mail not later than three business days following
receipt of a consumer's application when the
application reaches the creditor by telephone, or
through an intermediary agent or broker.
7

^Information provided in accordance with
variable-rate subsequent disclosure regulations of
other federal agencies may be substituted for the
disclosure required by paragraph (c) of this section.

section, that would be required to fully
How Your Interest Rate and Payment are
Determined
amortize the loan at the new interest
rate over the remainder of the loan term.
0 Your interest rate will be based on [an
index plus a margin] [a formula].
® Your payment will be based on the
interest rate, loan balance, and loan term.
7.
Appendix H is amended by
—[The interest rate will be based on
redesignating H-4 as H-4[A] and
(identification of index) plus our margin.
revising the heading in the table of
Ask for our current interest rate and
Contents, by adding H-4(B), H-4(C). and
margin.]
H-4(D), and by revising H-14 and the
—[The interest rate will be based on
heading in the table of contents to read
(identification of formula). Ask us for our
as follows:
current interest rate.]
—Information about the index [formula for
Appendix H—Closed-end Model Forms
rate adjustments] is published [can be
found]_______
and Clauses
—[The initial interest rate is not based on the
*
*
*
*
*
(index) (formula) used to make later
H-4(A) Variable-Rate Model Clauses
adjustments. Ask us for the amount of
(§ 226.18(f)(1))
current interest rate discounts.]
H-4(B) Variable-Rate Model Clauses
How Your Interest Rate Can Change
(§ 226.18(f)(2))
° Your interest rate can change
H-4(C) Variable-Rate Model Clauses
(frequency).
(§ 226.19(b))
° [Your interest rate cannot increase or
H-4(D) Variable-Rate Model Clauses
decrease more than_____ percentage points
(§226.20(c))
at each adjustement.]
*
☆
*
*
*
° Your interest rate cannot increase [or
H-14 Variable-Rate Mortgage Sample
decrease] more than_____ percentage points
(§ 226.19(b))
over the term of the loan.
* * * * *
How Your Payment Can Change
H-4(A) Variable-Rate Model Clauses
° Your payment can change (frequency)
*
*
*
*
*
based on changes in the interest rate.
0 [Your payment cannot increase more
H -4 (B ) V a r ia b le -R a te M o d e l C la u s e s
than (amount or percentage) at each
Your loan contains a variable-rate feature. adjustment.]
Disclosures about the variable-rate feature
• You will be notified in writing__ _ _
have been provided to you earlier.
days before the due date of a payment at a
new level. This notice will contain
H -4 (C ) V a ria b le-R a te M o d e l C lau ses
information about your interest rates,
This disclosure describes the features of
payment amount, and loan balance.
the Adjustable Rate Mortgage (ARM)
° [You will be notified once each year
during which interest rate adjustments, but
program you are considering. Information on
no payment adjustments, have been made to
other ARM programs is available upon
your loan. This notice will contain
request.

Appendix H—[Amended]

Year

information about your interest rates,
payment amount, and loan balance.]
° For example, on a SlO.OOO [term] loan
with an initial interest rate o f _____ (the rate
shown in the inters! rate column below for
the year 19-------- ), the maximum amount
that the interest rate can rise under this
program i s _____ percentage points, to
-------- %, and the monthly payment can rise
from a first-year payment of $_____ to a
maximum of $__ ___ in th e______ year.
Example
The example below shows how your
payments would have changed under this
ARM program based on actual changes in the
index from 1977 to 1991. This does not
necessarily indicate how your index will
change in the future.
The example is based on the following
assumptions:
Amount of loan........... $1 0 , 0 0 0
Term.............................. .......................
Change date................ ...................
Payment adjustment.... (frequency)
Interest adjustment
(frequency)
[Margin] *..................... .......................
C aps----- [periodic
interest rate cap]
_____ lifetime
interest rate cap
_____ [payment cap]
[Interest rate
carryover]—
[Negative
amortization]
[Interest rate
discount] **
Index............................. (identification of
index or formula)
' This is a margin we have used recently: your margin
may be different.
"'This is the amount of a discount we have provided
recently; your loan may be discounted by a different
amount.

Index (%)

Margin
(percentage
points)

Interest rate
(%)

Monthly
payment (S)

Remaining
balance (S)

1977................................................................................................................................................................... .................
1978..........................;..........................................................................................................................................................
1979......................................................................................................................................................................................
1980...................................................................................................................... ...............................................................
1981...................................................................................................................................................................................
1982............................................................ :...... ..................................................................................„..............................
1983..................................... ................................................................................................................................................
1984 ....................................................................................................................................................................................
1985 .............................. ..................................................................................................... ........................................ ........
1986....................................................... ..............................................................................................................................
1987................................................................................................................................................................ ...................
1988...................................................... .................................................................................................................... ..........
1989........................................................ ..............................................................................................................................
1990 ............................................................................................................................................................... ......._............
1991 ......................................................................................... ...........................................................................................

To see what your payments would have been which is based on an index value of
______%.
during that period, divide your mortgage
amount by $1 0 ,0 0 0 ; then multiply the monthly
Your previous interest rate w a s____
%,
payments by that amount (For example, in
which was based on an index value of
1991 the monthly payment for a mortgage
amount of $60,000 taken out in 1977 would be:
[The new interest rate does not reflect a
$60,000 — $1 0 , 0 0 0 = 6 ; 6 x_______ = $------------ change o f ----------- percentage points in the
per month.)
index value which was not added because of
------------ 1
H -4 (D ) V a ria b le-R a te M o d e l C la u ses
[The new payment will be $________]
Your new interest rate will b e ----------- %,
[Your new loan balance is $________]

[Your (new) (existing) payment will not be
sufficient to cover the interest due and the
difference will be added to the loan amount.
The payment amount needed to pay your
loan in full by the end of the term at the new
interest rate is $________]
[The following interest rate adjustments
have been implemented this year without
changing your payment:________These
interest rates were based on the following
index values:________]

interest rate.

H -1 4 V ariable-R ate M o rta g e S a m p le

about your interest rates, payment amount,
and loan balance.

How Your Interest Rate and Payment are
Determined

How Your Interest Rate Can Change
0 Your interest rate can change yearly.
° Your interest rate cannot increase or
decrease more than 2 percentage points per
year.
° Your interest rate cannot increase or
decrease more than 5 percentage points over
the term of the loan.

0 Your interest rate will be based on an
index rate plus a margin.
° Your payment will be based on the
interest rate, loan balance, and loan term.
° The interest rate will be based on the
weekly average yield on United States
Treasury securities adjusted to a constant
maturity of 1 year (your index), plus our
margin. Ask us for our current interest rate
and margin.
® Information.about the index rate is
published weekly in the W a ll S tre e t Journal.
® Your interest rate will equal the index
rate plus our margin unless your interest rate
"caps" limit the amount of change in the

How Your Montly Payment Can Change
° Your monthly payment can change
yearly based on changes in the interest rate.
® For example, on a $1 0 ,0 0 0 , 30-year loan
with an initial interest rate of 9.71% (the rate
shown in the interest rate column below for
the year 1987), the maximum amount that the
interest rate can rise under this program is 5
percentage points, to 14.71%, and the monthly
payment can rise from a first-year payment of
$85.62 to a maximum of $123.31 in the fourth
year.
0 You will be notified in writing 25 days
before the annual payment adjustment may
be made. This notice will contain information

This disclosure describes the features of
the Adjustable Rate Mortgage (ARM)
program you are considering. Information on
other ARM programs is available upon
request.

Index
(percent)

Year (as of 1st week ending in July)

1977.................................................. .......... ............................................ .........
1978......................... .........................................................................................
1979....................... .................. ........................................................................
1980...................................................................................................................
1981 .......................................... ;................. ................................................. .
1982...................................................................................................:..............
1983 .......................................... ...... ................................. ................. .............
1985.............................................. ...................................................................
1986..................................................................................................................
1987............. ........................................................................... ........................
T his is a margin we have used recently; your margin may be different
*"This interest rate reflects a 2 percentage points annual interest rate cap.
’ •'This interest rate reflects a 5 percentage points lifetime interest rate cap.
To see what your payments would have
been during that period, divide your mortgage
amount by $1 0 ,0 0 0 ; then multiply the monthly
payment by that amount. (For example, in
1987 the monthly payment for a mortgage
amount of $60,000 taken out in 1977 would be:
$60,000+$10,000 = 6 ; 6 X $88.07 = $528.42.)

By order of the Board of Governors of the
Federal Reserve System, dated December 2 1 ,
1987.
William W. Wiles,
S e c r e ta r y o f th e B oard.

[FR Doc. 87-29555 Filed 12-23-87; 8:45 am]
BILLING CODE 6210-01-M

5.72
8.34
9.44
8.51
14.94
14.41
9.78
12 17
7.66
6.36
6.71

Example
The example below shows how your
payments would have changed under this
ARM program based on actual changes in the
index from 1977 to 1987. This does not
necessarily indicate how your index will
change in the future. The example is based on
the following assumptions:
Amount............... $1 0 , 0 0 0
Term.................... 80 years.
Payment
1 year,
adjustment.
Interest
1 year,
adjustment.
Margin................ 3 percentage points.
Caps.................... 2 pecentage pointsannual
interest rate.
5 percentage points lifetime
interest rate.
Index.................. Weekly average yield on
U.S. Treasury securities
adjusted to a constant
maturity of one year.

Margin
(percentage
points)

Interest rate
(percent)

3
3
3
3
3
3
3
3
3
3
3

8.72
10.72*°
12.44
11.51
13.51*°
13.72*°°
12.78
13 72***
11.72**
9.72**
9.71

Monthly
payment
(dollars)
78.46
92.89
105.67
98.79
113.51
115.07
108.25
114.96
101.08
88.13
88.07

Remaining
balance
(dollars)
9,927.64
9,874.67
9,832.70
* 9,776.04
9,731.98
9,683.39
9,618.21
9,554.39
9,456.03
9,311.25
9,151.55

Full text of Federal Reserve Bank of New York Circulars : 10221. Truth in Lending

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