Section 617.7130 - What initial disclosures must a qualified lender make to a borrower?(a)Required disclosures-in general. A qualified lender must disclose in writing: (1) The interest rate on the loan;(2) The effective interest rate of the loan;(3) The amount of stock or participation certificates that a borrower is required to purchase in connection with the loan and included in the calculation of the effective interest rate of the loan;(4) All loan origination charges included in the effective interest rate;(5) That stock or participation certificates that borrowers are required to purchase are at risk and may only be retired at the discretion of the board of the institution; and(6) The various types of loan options available to borrowers, with an explanation of the terms and borrower rights that apply to each type of loan.(b)Adjustable rate loans. A qualified lender must provide the following information for adjustable rate loans in addition to the requirements of paragraph (a) of this section: (1) The circumstances under which the rate can be adjusted;(2) How much the rate can be adjusted at any one time and how much the rate can be adjusted during the term of the loan;(3) How often the rate can be adjusted;(4) Any limitations on the amount or frequency of adjustments;(5) The specific factors that the qualified lender may take into account in making adjustments to the interest rate on the loan; and(6) If the borrower's interest rate is directly tied to a widely publicized external index: (i) How and where the borrower may obtain information on changes to the index; and(ii) When the qualified lender will provide written notice of changes to the borrower's interest rate. 69 FR 16459 , Mar. 30, 2004,, as amended at 74 FR 67972 , Dec. 22, 2009