The Office of Thrift Supervision last week simplified disclosure requirements for adjustable rate mortgages.

Under the rule, lenders must choose from two disclosure options. The first option would require creditors to disclose the maximum interest rate and payment for a $10,000 loan and inform borrowers that their periodic payments may change substantially during the life of the loan. The second would require thrifts to provide a 15-year historical example of how changes in interest rates would have affected payments on a $10,000 loan.

Previously, thrifts were required to provide both sets of information. The changes mirror rules adopted by the Federal Reserve Board in November.

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