N.Y. Comp. Codes R. & Regs. tit. 3 § 33.2

Current through Register Vol. 46, No. 51, December 18, 2024

Section 33.2 - Disclosures

All disclosures required under this Part are to be made in a single, separate document, in plain language and with captioned subdivisions for the information to be disclosed. Such disclosures shall be provided by the lending institution to the person who is to be primarily liable on the loan, prior to the consummation of the loan. Disclosure shall be made, in any reasonable order, of the following information:

(a) the identification of the index to be used by the lending institution in connection with varying the rate for the loan and where the index figures are available;

(b) the circumstances under which the rate for the loan may vary, including disclosures of the intervals at which the lending institution may change the rate on the loan, the time(s) or date(s) at which the lending institution calculates the rate with respect to the index, and any conditions or events on which the changes in rate are contingent;

(c) the effect or the combination of effects that an increase in the rate on the loan may have on the amount of the monthly payment, or the number of monthly payments or the amount of the final payment;

(d) a hypothetical example, illustrative of the type of credit being offered, of the effect or the combination of effects of a rate increase on the amount of the monthly payment, or the number of monthly payments or the amount of the final payment;

(e) the history of the movements in the index selected for the loan, as further provided under section 33.3 of this Part;

(f) the fact that the borrower will receive prior notification from the lending institution of increases in the rate or changes in the terms of payment, and the time periods within which such notifications will be sent;

(g) any limitations provided by contract with respect to the amount of any increase in the rate or the extent of all increases in the rate over the life of the loan and if the lending institution establishes ceilings or floors (i.e., "caps") beyond which rate changes will not be made, a statement of such limits and the manner in which they will function; and

(h) the option which will be available to the borrower in the event that the requirements of section 33.7 of this Part apply with respect to the final payment on the loan.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 33.2