Periodic Disclosure of Interest Rate Change

Periodic Disclosure of Interest Rate Change

for Home Equity Conversion Mortgage (HECM)

(Suggested Form)

__________________________________________________ ____________________

Lender Name Date

___________________________________________________________________________

Address

_________________________

Telephone Number

__________________________________________________

Borrower(s) Name

___________________________________________________________________________

Address

RE: NOTICE OF CHANGES IN YOUR INTEREST RATE ON YOUR ADJUSTABLE RATE

HECM

Dear Borrower:

On ___________ [date], the interest rate on your adjustable rate HECM

will _________________ [increase/decrease] from _______% to _______%.

Your present interest rate was based on an index value of ______%. To

determine your new interest rate, we added the current index value of

______% as of ______________ [date index was issued], to the agreed upon

margin of ______% for a total of ______%. [This new rate has/hasn't been

rounded to the nearest 1/8th percent, circle to indicate rounding, or not].

Your new interest rate of ______% may not be more than two percentage

points higher or lower than your prior rate of ______%.* The initial

interest rate on your mortgage was ______%, which may not be increased

beyond ______% during the life of the mortgage.

If you have any questions, please call ________________ at the

telephone number listed above.

Sincerely,

_______________________________

Note:If the annual Periodic Disclosure of Interest Rate Change is

designed to include all the essential factors for calculation of

the new interest rate, a file copy should be sufficient to

reflect the computation.

* if applicable