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#2103495 - 10/18/16 07:26 PM Escrow State - Expired Lock
Compliance NABW Offline
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We had a situation come up where a loan in an escrow state did not disburse the next day, but is set to disburse today (2nd business day after closing). The lock expired, so secondary is looking to do a rate lock extension, but there is usually a fee associated with this. The 7-day extension costs $600. The Final CD has been signed by the borrower, but for investor or other purposes the loan is not "closed" until disbursement. Any thoughts on whether we can charge the lock extension fee to the borrower, as a circumstance arose that we were unaware of when the disclosures were previously provided? Or, do we need to honor the final CD and "eat" the fee?

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#2103498 - 10/18/16 07:33 PM Re: Escrow State - Expired Lock Compliance NABW
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
but for investor or other purposes the loan is not "closed" until disbursement.

That is not the consumer's issue.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2103522 - 10/18/16 08:24 PM Re: Escrow State - Expired Lock Compliance NABW
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Joined: Oct 2015
Posts: 1,668
You would say "eat" it then, correct?

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#2103524 - 10/18/16 08:25 PM Re: Escrow State - Expired Lock Compliance NABW
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
I don't see any other option. The consumer closed the loan. How do you plan to go back after them for more money?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2103560 - 10/18/16 09:15 PM Re: Escrow State - Expired Lock Compliance NABW
Compliance NABW Offline
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Joined: Oct 2015
Posts: 1,668
I agree. Thank you for your help. I could see an argument for saying that the facts of what was relied on in providing the initial CD changed, but with this situation of having issued a final CD, which is signed on the date the note is and for most purposes "closed," I don't think that would fly.

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