The Federal Reserve Board has simplified the disclosure requirements for adjustable rate mortgages.

Under the rule, creditors must notify borrowers that their periodic payment may substantially change. They also must disclose the maximum interest rate and payment based on a $10,000 loan amount.

Before the change, banks provided a 15-year historical example of how changes in interest rates would have affected payments on a $10,000 loan.

The revisions to Truth-in-Lending took effect Friday, but compliance is optional until Dec. 22.

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