|Subject:||Truth in Lending Act Amendment|
|Date of Memorandum:||01/08/1998|
|Expiration Date:|| |
|Signed By:||Smith, Roland|
|FCA Contact Person:||Holland, Tom|
|List of Attachments:||Revision to Regulation Z|
January 8, 1998
To: The Chief Executive Officer
All Farm Credit System Institutions
From: Roland E. Smith, Director /s/
Office of Examination
Subject: Truth in Lending Act Amendment--Regulation Z
The Farm Credit Administration is distributing a recent revision to Regulation Z, Truth in Lending Act, that gives creditors flexibility in providing variable-rate disclosures. The amendment applies to variable-rate loans with a term exceeding 1 year and secured by the consumers’ principal dwellings. 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 15-year historical example of index values.
The revisions are effective immediately but compliance is optional until October 1, 1998. If you have questions about this or similar communications issued previously, please call Leslie Fridley in the Office of Examination at (703)883-4168.