A lender disclosed at application a rate of 3.35, when the rate was actually locked, it locked at 3.5, (and not past the 10 days) but for some reason, they never redisclosed at rate lock, (which is unusual for us) are we locked in at the 3.35 because it wasn't disclosed at lock? I can't seem to find a good answer on it. It says the GFE isn't a contract, but if you failed, now what? I know we would pay restitution if it was a fee, I'm just confused on the rate because of missing the lock disclosure within the 3 days. The loan hasn't closed yet.

This is one of those stinky situations I hate to try and call.

You didn't give them the rate lock GFE so you have an incurable violation there. Assuming you have a lock with a par off I don't understand how you can give them the lower rate now.

Hopefully someone else will weigh in on this.

If I am understanding your time line.

GFE provided quoting a rate of 3.35%. My questions is, in the "important dates field", how long did you say that rate (3.35%) is good for in question one? If it is like most banks it is only good the date of the GFE. And if they locked their rate after that date, then they get that rate (3.5%).

So, my second question is, how does the consumer know their rate is locked? Did you have them sign a Rate Lock disclosure? If yes, then that is the rate they get.

The only problem I see is, any fees that may have changed when you locked their rate, those are now items you will need to cure (if they were higher).

I hope I explained this right?

Well, the problems is the GFE and the rate lock happened on the same day from my understanding. It was just one of those crazy situations, and to tell you the truth, we are really good about this, but mistakes happen..... yes we have a violation that we can't fix, (most are) I'm just at a little loss on the rate issues when it does. I understand in the fees changed there will be a problem there. Yes, the customer did agree to the rate lock, it was their decision.

Timing is critical here. Did the loan come in for disclosure not locked then later that day, the customer locked at the higher rate? As DD asked, did the customer sign something acknowledging the 3.5%?

Say one has an date of GFE on 8/15/2011 and the rate was locked on 8/16/2011. Would we be in violation if we did not redisclose?

Possibly... was the rate disclosed on 8/15 and locked on 8/16 the same or no? If so, on the GFE dated 8/15, what date or timeframe was listed on line 1?

Thankfully the rate on the rate lock is the same as the GFE disclosed rate. The date listed on line 1 of the GFE is 8/17/2011.

You may have gotten lucky and not have to eat fees, Bec, because your GFE matches what you actually locked at.
But you have a violation for not redisclosing on the 16th.

Thank you

Checking back in... what Truff said.

If we do not lock rates until closing do we need to issue re-issue GFE at closing?

Bump

Search 'lock rate at closing' under Dan Persfull's name. I believe he's addressed this in previous threads because his bank does it.