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#1655022 - 01/24/12 05:17 PM Rate locked, but appraisal comes in low
Burgess Offline
Diamond Poster
Joined: Jan 2004
Posts: 1,621
we base somewhat our rate off the LTV.
we issue a GFE and lock the rate.
the appraisal comes in low.
the rate needs to go up 1/2%.
is this a changed circumstance that would allow us to raise the rate?
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RESPA
#1655041 - 01/24/12 05:47 PM Re: Rate locked, but appraisal comes in low Burgess
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,336
Galveston, TX
I would be first reviewing your rate lock agreement with your attorney to see if you can break the lock under these circumstances.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1655044 - 01/24/12 05:48 PM Re: Rate locked, but appraisal comes in low Burgess
RulesFollower Offline
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Joined: Oct 2011
Posts: 185
We would honor the rate that is locked with the customer and be more careful about WHEN we locked rates in the future if the LTV is a consideration.

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#1655075 - 01/24/12 06:08 PM Re: Rate locked, but appraisal comes in low Burgess
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,397
Originally Posted By: burgess
we base somewhat our rate off the LTV.
How do you know what the V is until you get the appraisal?
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we issue a GFE and lock the rate.
suggest you issue the GFE based on a floating rate. That will allow you to lock the right rate when
Quote:
the appraisal comes in low. and
the rate needs to go up 1/2%.
as it stands, why does the rate need to go up? if it's so you can make a profit, the answer to the following question is 'definitely not'.
Quote:
is this a changed circumstance that would allow us to raise the rate?

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