Can someone confirm or deny this for me?
I believe a rate lock is when the borrower locks with the financial institution not when the FI locks with another FI. Is that right?
So in a secondary market situation, the bank secures a rate with the investor then "locks" with the borrower. Generally documented.
But for a portfolio loan, if the borrower and the FI are haggling over rates and the initial GFE went out with no lock, when the bank and the borrower agree on a rate, that is a "lock", requiring a new GFE. Right?
I thought I read that on here somewhere or the FAQs or maybe heard it a seminar, but I can't find anything to support my thoughts.
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