You have to provide a new LE with a rate lock extension to disclose the expiration date and fee.

ok, but I thought you couldn't provide a revised LE after the CD has been provided?

You can't. You relocked the rate and charged a fee after the CD was issued??? Why would you charge a 0% tolerance fee that you are going to have to cure??

Thanks Randy...actually those were 2 hypothetical situations so I agree you wouldn't want to charge the customer an extension fee...it would be absorbed by the bank.

Question, If the loan is not locked at initial LE and it is time for your initial CD to go can you send the CD as the COC? Rate lock info does not appear on the CD. Or must you always disclosed lock terms on the LE and wait to be able to issue the CD.

You are locking with less than four business days from closing?

hypothetical.....

Also, if the rate was locked but closing date moved and the initial CD had already gone out how do you disclose new lock terms?

Since you can't provide another Loan Estimate, the only way you can share the lock terms is to ensure the borrower gets a copy of the rate lock agreement (which he ought to get anyhow), or provide them in some other written form.

what if the rate lock expire and the loan has not progressed to the closing disclosure. I know I need to send the rate lock extension but with TRID I don't need to send a revised LE?

Confused.....

On the Loan Estimate the two key pieces of information relative to Rate Locks are (1) is there a formally executed rate lock? and (2) if there is a rate lock, when does it expire?

If you've issued an LE that says YES there is a rate lock and it expires on February 1, 2016, at 5 p.m. EST, you don't issue a revised LE after that date that says NO to the rate lock question. Why? Because the borrower already has been told the rate lock died at 5 in the afternoon on February 1.

But if you extend the rate lock to 5 p.m. EST on February 20, 2016, that's new information, and once the extension is executed, you have to issue a revised LE to report the new expiration date.

Does a rate lock trigger a CIC?

Thanks!

"Does a rate lock trigger a CIC?"

Yes, however you can only revise the charges/fees that are directly affected by the rate lock. You cannot revise (reset) any fees that are not affected by the rate lock, as an example an understated appraisal fee would not be affected by the rate lock therefore you could not reset the tolerance for this understatement.

Thank you!

Actually, a Rate Lock IS a CIC and it mandates a new LE be given showing the YES box checked and showing the expiration date.
As Dan pointed out, only fees directly affected by the rate lock may be changed.

Just came across this thread and found it timely to a conversation we recently had. 1026.19(e)(3)(iv)(D)- copied below has been the focus of our conversation; specifically "the creditor shall provide a revised version of the disclosures...with the revised interest rate, etc. etc."

If the LE was issued as not locked and then the consumer subsequently locks their rate WITH THE EXACT SAME terms as was initially disclosed on the LE, nothing is 'revised'? To what degree does the reference "revised interest rate, etc." enter into the interpretation of whether or not to reissue a LE as locked? Now if the subsequent rate lock agreement has the slightest change from what was initially disclosed then absolutely a revised LE would be required. Our conversation is strictly about a subsequent RLA with the exact same terms. FWIW: our rate lock agreement provides the consumer with a rate lock expiration date; we are a portfolio lender, have no investors to appease, have very stable rates that do not (at least in this current rate environment) fluctuate often.

1026.19(e)(3)(iv)(D)- Interest rate dependent charges. The points or lender credits change because the interest rate was not locked when the disclosures required under paragraph (e)(1)(i) of this section were provided. No later than three business days after the date the interest rate is locked, the creditor shall provide a revised version of the disclosures required under paragraph (e)(1)(i) of this section to the consumer with the revised interest rate, the points disclosed pursuant to § 1026.37(f)(1), lender credits, and any other interest rate dependent charges and terms.

and any other interest rate dependent charges and terms.

You have to revise the LE to disclose the rate is locked and the term for the rate lock expiration. Your rate lock agreement cannot substitute for the disclosure requirements of the LE.

OK, thank you for the information.