Page:United States Statutes at Large Volume 122.djvu/2879

 12 2 STA T . 2 856PUBLIC LA W 11 0– 28 9—J UL Y3 0, 2008 mer e lyb e caus ey o u h a v e rece i ve dt hese disclosures or si gn edaloana p plication .’; and ‘ ‘ ( ii ) be provided in the f orm of final disclosures at the time of consummation of the transaction , in the form and manner prescribed by this section. ‘‘( C ) I nthecaseofane x tension of credit that is secured bythed w elling of a consumer, under which the annual rate of interest is variable, or with respect to which the regular payments may otherwise be variable, in addition to the other disclosures re q uired by subsection (a), the disclosures provided under this subsection shall do the following

‘‘(i) L abel the payment schedule as follows: ‘ P ayment S chedule: Payments W ill V ary B ased on Interest R ate Changes’. ‘‘(ii) State in conspicuous type si z e and format examples of ad j ustments to the regular required payment on the extension of credit based on the change in the interest rates specified by the contract for such extension of credit. A mong the examples required to be provided under this clause is an example that reflects the maximum payment amount of the regular required payments on the extension of credit, based on the maximum interest rate allowed under the contract, in accordance with the rules of the Board. Prior to issuing any rules pursuant to this clause, the Board shall conduct consumer testing to determine the appropriate format for providing the disclosures required under this subparagraph to consumers so that such disclosures can be easily understood, including the fact that the initial regular payments are for a specific time period that will end on a certain date, that payments will adjust afterwards potentially to a higher amount, and that there is no guarantee that the borrower will be able to refinance to a lower amount. ‘‘( D ) In any case in which the disclosure statement under subparagraph (A) contains an annual percentage rate of interest that is no longer accurate, as determined under section 107 (c), the creditor shall furnish an additional, corrected statement to the borrower, not later than 3 business days before the date of consummation of the transaction. ‘‘( E ) T he consumer shall receive the disclosures required under this paragraph before paying any fee to the creditor or other person in connection with the consumer’s application for an extension of credit that is secured by the dwelling of a consumer. If the disclosures are mailed to the consumer, the consumer is considered to have received them 3 business days after they are mailed. A creditor or other person may impose a fee for obtaining the consumer’s credit report before the consumer has received the disclosures under this para - graph, provided the fee is bona fide and reasonable in amount. ‘‘( F )W AIVEROFT I M E L I N E S SOF D IS C LOS U RES. — To expedite consummation of a transaction, if the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency, the consumer may waive or modify the timing requirements for disclosures under subpara- graph (A), provided that— ‘‘(i) the term ‘bona fide personal emergency’ may be further defined in regulations issued by the Board; Defin i t i o n .R e gula tion s . Dea d line. C onsu m e r testing.

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