Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#2084868 - 06/23/16 05:51 PM Rate Lock Agreements
LostFan Offline
100 Club
Joined: Feb 2004
Posts: 119
New Jersey
I'm researching to determine if there are any state regulations requiring certain language to be included in rate lock agreements. Does New Jersey have any requirements?

Any help is much appreciated.

Return to Top
#2084909 - 06/23/16 07:11 PM Re: Rate Lock Agreements LostFan
Docs Offline
100 Club
Joined: May 2016
Posts: 241
A quick search using Google turns up New Jersey Administrative Code 3:1-16.4 which addresses required content for lock-in agreements for "lenders". Lender is defined in the related rules as "a State or Federally-chartered bank, savings bank, savings and loan association, credit union, or a mortgage lender or correspondent mortgage lender as defined in N.J.S.A. 17:11C-53."

N.J.A.C. 3:1-16.4 (2016)

§ 3:1-16.4 Lock-in agreements

(a) All lock-in agreements shall be in writing and shall contain at least the following provisions:

1. The expiration date of the lock-in, if any;

2. The interest rate locked in, if any;

3. The discount points locked in, if any;

4. The commitment fee locked in, if any;

5. The lock-in fee, if any; and

6. A statement advising of the provisions of (b), (c) and (d) below if applicable and of the provisions of N.J.A.C. 3:1-16.6(a).

(b) The lender shall make a good faith effort to process the mortgage loan application and/or stand ready to fulfill the terms of its commitment before the expiration date of the lock-in agreement and any extension thereof.

(c) In the event a lock-in agreement is executed and the loan applied for is denied, the lender shall promptly refund any lock-in fee paid.

(d) Any lock-in agreement received by a lender by mail or through a broker must be signed by the lender before it will become effective. The borrower may rescind the lock-in agreement until receipt of a copy of the agreement signed by the lender by providing the lender with written notification of such rescission. Mailed notification of rescission shall be effective upon mailing. If a borrower elects to so rescind, the lender shall promptly refund any lock-in fee paid.


HISTORY:

Amended by R.1992 d.149, effective April 6, 1992.

See: 23 New Jersey Register 2613(b), 24 New Jersey Register 3(a), 24 New Jersey Register 1380(a).
_________________________
Just my opinion, I could be wrong. - Dennis Miller

Return to Top
#2086800 - 07/06/16 04:15 PM Re: Rate Lock Agreements Docs
LostFan Offline
100 Club
Joined: Feb 2004
Posts: 119
New Jersey
Thanks!

Return to Top