When should the initial rate adjustment notice be delivered?

The correct timing for delivering the initial rate adjustment notice is between 210 and 240 days before the first payment. This proactive approach ensures that borrowers are adequately informed about upcoming changes to their payment terms, particularly those related to adjustable-rate mortgages (ARMs).

Providing the notification within this timeframe allows borrowers to prepare for the potential changes to their monthly payment amount and to understand the implications of the rate adjustment. This requirement is in place to promote transparency and enable borrowers to make informed financial decisions, ultimately enhancing borrower protection.

The other options do not align with regulatory guidelines. Immediate delivery at loan origination or upon request does not give borrowers sufficient time to prepare for adjustments. Additionally, notifying borrowers just 30 days prior does not meet the requirement to inform them far enough in advance about potentially significant changes to their mortgage payments.