What is the scope of the consumer handbook on adjustable-rate mortgages?

The correct answer highlights that the scope of the consumer handbook on adjustable-rate mortgages (ARMs) specifically includes ARMs with a term of greater than one year that are secured by the borrower's principal dwelling. This focus is essential because the handbook aims to inform consumers about the features, risks, and benefits associated with these types of loans, which are typically the most relevant for homeowners.

ARMs that are over one year in term duration are often subject to specific regulatory disclosures and consumer protections that help potential borrowers understand how their payments can change over time. By securing these mortgages against the borrower's primary residence, the guidelines ensure that they are addressing the most common situations faced by consumers, emphasizing the importance of being knowledgeable about terms and conditions relating to their main living environments.

In contrast, the other options do not align with this specific focus. For instance, ARMs with a term of one year or less may not have the same complexities, and the consumer handbook primarily targets longer-term loans that can have significant fluctuations in payment due to interest rate adjustments. Additionally, ARMs that are not secured by any property, or those secured by rental properties, fall outside the handbook's primary intention, which is to protect and educate homeowners regarding their primary residence mortgages.