If there is an ARM loan, how many business days must the CHARM booklet and specific ARM program disclosure be delivered to the borrower after receiving the application?

In the context of adjustable-rate mortgage (ARM) loans, the CHARM booklet and specific ARM program disclosure are important documents that help borrowers understand the terms and risks associated with the loan. According to the federal regulations, specifically the Truth in Lending Act (TILA), lenders are required to provide these disclosures to borrowers within three business days of receiving a loan application.

This requirement is in place to ensure that borrowers have sufficient time to review the details of the ARM loan before making any decisions, promoting transparency and informed decision-making. The CHARM booklet serves as an educational resource that outlines how adjustable-rate loans function, including potential changes in interest rates and payment amounts over time.

It's crucial for borrowers to receive this information promptly, which is why the three-business-day timeframe is established as a necessary part of the lending process for ARMs. This ensures that consumers are adequately informed prior to proceeding with the loan transaction, allowing them to weigh their options carefully.