Legal Blog

CHARM Booklet Revised

The Bureau has revised the CHARM Booklet, for immediate use, to provide updates based on consumer testing and removes references to LIBOR based rate examples.  The updated booklet aligns itself with the Bureau’s efforts to improve readability and usability.  The booklet has a similar look as the Your Home Loan Toolkit which is given alongside the CHARM booklet when a borrower is considering an adjustable rate mortgage.

New features:

  1. a comparison table that describes adjustable rate mortgages and their differences in relation to fixed-rate loan products;
  2. an explanation of how an adjustable rate mortgage works;
  3. a tutorial on how to review an ARM Loan Estimate and a lender’s ARM program disclosure;
  4. a comparison table for the various adjustable and fixed-rate loan offers that reader has received or will receive; and
  5. a description of the risks that come with different types of adjustable rate mortgages.

Distribution and Use of the Updated CHARM booklet

  1. Creditors may, at their option, immediately begin using the revised CHARM booklet, or a suitable substitute, to comply with TILA requirements.
  2. The Bureau understands, however, that some creditors may wish to use their existing stock of the booklet. Therefore, those who provide the booklet may use earlier versions until existing supplies are used. When reprinting the CHARM booklet, the most recent version should be used.

What does this mean for you?

  1. Reach out to your document provider and inquiry when they will be releasing the updated CHARM booklet.
  2. Inform your mortgage loan originator about the updated booklet.  Are they ready to address questions from their borrower?
  3. Got paper?  Inform your office staff to remove the older versions and replace with the updated version if you decide not to use your current supply.


You can access the CHARM booklet here and the Federal Register notice here.


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