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]