In Requirements section of Adjusted Mortgage Regulation (12 CFR 34), for loans subject to both the OCC ARM regulation and to Regulation Z, 12 CFR 226.19(b)
""that is, loans made to an individual, for personal purposes, secured by the borrower's principal dwelling, and having a term longer than one year"" the index to which the interest rate is tied must be:
For loans subject to both the OCC ARM regulation and Regulation Z, it is required that the index to which the interest rate is tied must be specified in the loan documents to ensure clarity and must be readily available to and verifiable by the borrower to ensure transparency and fairness. This meets the requirement that the borrower understands how the interest rate is adjusted and can verify the index themselves.
Don't back chat or mymble just do a and b
For loans that are subject to both the OCC ARM (Adjustable Rate Mortgage) regulation and Regulation Z, it is required that the index to which the interest rate is tied must be specified in the loan documents (making it clear and understandable for the borrower) and readily available to and verifiable by the borrower (ensuring transparency and fairness in how the interest rates are adjusted). The mention of multiple values or a moving average (option C) does not specifically apply to the requirements for the index as outlined in the regulation sections mentioned