Questions and Answers
Do the disclosures we have on our open-end home equity disclosure form have to appear in any particular order?
Yes. Regulation Z does mandate that certain disclosures precede others for home equity loans. The following required statements must be disclosed before the remaining required disclosures:
- A statement that the consumer should retain a copy of the disclosures.
- A statement of the time by which the consumer must submit an application in order to obtain the disclosed terms, plus identification of any term that is subject to change prior to opening the plan.
- A statement that the consumer can receive a refund of fees paid in connection with the plan if a disclosed term changes (other than a rate change in a variable rate plan) prior to opening the plan.
- A statement that the lender will acquire a security interest in the consumer's dwelling and that loss of the dwelling may occur in the event of a default.
- A statement that under certain conditions the creditor may terminate the plan and require payment of the outstanding balance in full in a single payment and impose fees at that time, and that the creditor may prohibit additional extensions of credit or lower the credit limit, and that the creditor may implement certain other changes in the plan.
- A statement that the consumer, on request, can obtain information about the conditions in the previous item.
