Which type of loan does NOT typically require periodic disclosures?

Construction loans are designed to provide financing for the building of a home or major renovation projects. Unlike other loan types mentioned, such as fixed-rate mortgages and adjustable-rate mortgages, which involve new disclosure requirements at regular intervals (especially during rate adjustments or as part of the Truth in Lending Act), construction loans often have different characteristics.

These loans are usually short-term and funded in stages as the construction progresses, which means that they are not structured in the same way as traditional mortgage products that necessitate ongoing disclosures regarding interest rates and payment schedules over a longer duration. Typically, once the construction is completed, the loan may convert to a permanent mortgage, at which point the disclosure requirements would then apply.

In contrast, fixed-rate and adjustable-rate mortgages are governed by numerous federal regulations requiring periodic disclosures not just at origination but also throughout the life of the loan to keep the borrower informed about interest rates and other vital aspects of their loan. Home equity lines of credit also require disclosures related to changing credit limits and interest rates, which are subject to certain regulations.

Thus, the nature of construction loans, their short-term focus, and funding processes distinguish them from those other loan types that mandate regular disclosures.