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Code of Federal Regulations (Last Updated: May 6, 2024) |
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Title 12 - Banks and Banking |
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Chapter VI - Farm Credit Administration |
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SubChapter B - Farm Credit System |
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Part 617 - Borrower Rights |
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Subpart C - Disclosure of Differential Interest Rates |
§ 617.7200 - What disclosures must a qualified lender make to a borrower on loans offered with more than one rate of interest?
Latest version.
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§ 617.7200 What disclosures must a qualified lender make to a borrower on loans offered with more than one rate of interest?
A qualified lender that offers more than one rate of interest to borrowers must notify each borrower of the right to request a review of the interest rate charged on his or her loan no later than the time of loan closing. At the request of a borrower, the lender must:
(a) Provide a review of the loan to determine if the proper interest rate has been established;
(b) Explain to the borrower in writing the basis for the interest rate charged; and
(c) Explain to the borrower in writing how the credit status of the borrower may be improved to receive a lower interest rate on the loan.
[69 FR 16459, Mar. 30, 2004]