Below mentioned is the necessary information that should be included in the _.
Risk of payment shock--potential payment increases; how the new payment will be calculated when the introductory rate expires
Ramifications of prepayment penalties--how they will be calculated, when they will be imposed
Ramifications of balloon payments
Ramifications of the lack of escrowing for taxes and insurance--who is responsible for paying taxes and insurance and the fact that their costs may be substantial Cost of reduced documentation loans--whether there is a pricing premium required
- Consumer protection principles
- Underwriting standards
- Workout arrangements
- None of these