I'm sorry if this has already been asked but October 1st is coming fast! We do not require a borrower to sign a rate lock form for our portfolio mortgage loans. We give them the lowest of either the rate at the time they apply, or the rate at the time we issue the commitment letter. If we run the APR at application and the loan is not "higher priced" but the loan and APR is different at the time we commit, do we have to rerun the APR? If so, and the loan is now a higher priced mortgage I assume we have to redisclose the GFE to include escrows?

Thank you!

Dawn

You have to base your determination for HPML status on when the "final" rate is set. Therefore if you lock the rate at the time you provide the commitment letter then that is the date you set the rate and the date you use for comparison.

If you don't use a commitment letter (ie for loans kept in house rather than 2ndy Mkt) . . .
IMO - You should use the date that the officer ; committee ; whoever ; signs on your "Loan Approval Form" (whatever your institution calls it). That is when the lending institution is commiting to the stated terms on the approval sheet & that includes a rate.

If they allow the rate to float until they are ready to close the loan the rate really has not been set until they generate the loan documents for closing.

Dan is correct - As Always -
But this is not something I am familiar with in our market - I don't think our customers would 'stand for' an approval of "Yes we will do the loan, but you won't know for sure what the rate will be until we are ready to close"

Different markets have different patterns and we all base our answers on our markets and how we comply in our shops and BOL gives us all the opportunity to get those different perspectives from all across the country.

In our area once the the applicant is notified of the loan approval they are given the option to lock the rate or to let it float. We don't automatically set (lock) the rate at approval.