For immediate release

The Federal Reserve Board today issued an amendment to its Truth in Lending Regulation that gives creditors flexibility in providing variable-rate disclosures. The amendment applies to variable-rate loans with a term exceeding one year and secured by the consumer's principal dwelling. 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 fifteen-year historical example of index values. The revisions are effective immediately but compliance is optional until October 1, 1998. The revisions implement a provision of the Regulatory Paperwork Reduction Act of 1996. The Board's notice is attached.

Summary only | Summary and final rule (43 KB PDF)

1997 Banking and consumer regulatory policy