Rate locks offered by institution...Do you have important date #1 go through the rate lock expiration, closing date, or funding date?

Important Date #1 should disclose the date that the rate is good through. If the rate lock is only good until the expiration of the rate lock agreement then that is the date used. If the rate is good through the day of closing then that is the date used.

Have you seen any issues with the important date not covering the rescission period?

How can the rate change during the rescission period?

If you adjust the rate after the loan closes then you have a variable rate loan and would have to disclose it as such.

I don't think that's what Mrs. Rizzo meant, Dan.
I think she meant that the rate was locked to the closing date but expired on say, day two of the recission period.

The only way I can see this being a problem is if the rate was locked on secondary. At the very least, the bank would have to get an extension on the rate with the investor and absorb any cost associated with it.

If we have a loan that is closing that close to expiration and it's the borrower's fault it won't close in time, prior to closing we extend the rate long enough to get it delivered and redisclose to add the cost to the GFE.

Is this what you meant, Mrs. Rizzo?

Once you close, your done...no need for the date to include the recission period.

^^^I presume she's talking in-house rate lock.

I was talking locking with an investor.

Yes, Truff! That is it.

Right now, when we lock with our investor, it's good through the estimated funding delivery date to the investor. However, the consumer locks with us and we've only put #1 through our closing date, but I feel that we should have our lock with the consumer through the funding date. Especially when it comes to rescission or the lock expiring over the weekend or a holiday.

We date line one when they need to close by with us, to ensure we have time to get it to the investor for funding prior to the end of the lock period. For example I have a 60 day lock, I put the date 50 days out.

My lock timing with my investor and my lock timing with my borrower are two separate events.

^^^ditto
That's how we make sure we have time enough to solve problems and deliver too.

You guys rock! Thank you so very much!

My lock timing with my investor and my lock timing with my borrower are two separate events.

EXACTLY! Date #1 should disclose the timing requirement between the lender and the borrower, not the lender and the investor.