The borrower loan changes from a fixed-rate to an adjustable-rate mortgage after the CD has been delivered. What is required?

Correct answer: A revised CD with a new 3-day waiting period

A change in the loan product (e.g., from fixed to ARM, or vice versa) is one of three changes that trigger a new 3-day waiting period for the CD. The three triggers are: (1) APR increase above tolerance, (2) addition of a prepayment penalty, (3) change in loan product. A revised CD must be provided.