Okay...so if the rate is locked (assuming there is a lock agreement between the consumer and creditor) after the initial LE has been provided. Then the revised LE is required to be disclosed on the same day there is a rate lock agreement.

What if there is a rate lock extension applied to the loan or the loan is re-locked due to the expiration of the first lock.

Is a LE required to be disclosed on the same day for both scenarios?

I only see re-lock loans mentioned in the commentary and only relative to the current reg x.


Would you agree in either of these situations that this should be re-disclosed on the LE before a CD is provided if it is known that locking the loan before closing is a requirement of the product or company policy?

Would not a rate lock extension be the same as re-locking the rate? All the extension agreement is doing is relocking/extending the rate for another period of time.

BTW, the revised LE has to be provided the next business day. They revised the "same day" rule.

Don't want to rain on your parade, Dan, but the Bureau proposed that change in the Federal Register on 10/29/14 with an 11/10/14 comment deadline. It hasn't yet announced a final rule.

It hasn't yet announced a final rule.

Wishful thinking on my part I guess. But yes you are correct, it is currently only a proposal.

Thanks Dan and John, I know Dan, it is wishful thinking...and I could, but won't at this time add a few other thoughts on that subject.

Dan when you put it in print, I agree. I think I got stuck because in the pream to the final rule, it mentions the current requirements of having to disclose for rate locks and re-locks and then intention would be the same. Low and behold, when you get to the text of the reg it does not mention "re-lock" that I can find. I have a tendency not to peek outside the box.

One more question.
Would you agree, that if it is known that a requirement of the loan is that the rate must be locked before it can go to closing, that the terms of the lock should be disclosed on the LE before a CD is provided? (good faith and due diligence )

Does the borrower have to lock the rate or is the requirement for the lender to lock the rate with the investor?

If the former you will have to reissue a LE when the rate is locked so that would take care of disclosing the rate lock details. If the latter then that is between the lender and the investor and should not affect the borrower's LE.