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#2194869 - 10/05/18 11:19 PM Rate Lock- Fixed Int Rate Product no agreement
Vive Accommodare Offline
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Registered: 04/11/13
Posts: 464
Loc: Compliance
We have subordinate loan products from a state financing agency where the interest rate for the subordinate products are always the same (one has no interest rate period) and they do not have an actual contractual agreement under both Fed and State law. When we reserve these types of loans with the agency, they state it is "reserving/locking" the loans, but again there isn't an actual agreement between the borrower, or agency, or the lender. Would we be required to disclose a revised loan estimate in those cases for the subordinates given there isn't a written agreement and on one of them there isn't even an interest rate?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2194874 - 10/06/18 12:45 PM Re: Rate Lock- Fixed Int Rate Product no agreement [Re: Vive Accommodare]
rlcarey Offline
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Registered: 07/16/01
Posts: 68315
Loc: Galveston, TX
Unless there is a written rate lock executed between the consumer and the creditor, the rate is not considered locked under TRID. How the creditor sets the rates for the loan really doesn't matter.
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#2195048 - 10/09/18 09:05 PM Re: Rate Lock- Fixed Int Rate Product no agreement [Re: Vive Accommodare]
Vive Accommodare Offline
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Registered: 04/11/13
Posts: 464
Loc: Compliance
This may be a legal question, but if the products are fixed rates (based off of what product the borrower chooses to use from the state financing agency) would we even need to do a written rate lock agreement?
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"Tact is telling someone to go to [censored] in such a way, they look forward to the trip" Winston Churchill

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#2195055 - 10/09/18 10:21 PM Re: Rate Lock- Fixed Int Rate Product no agreement [Re: Vive Accommodare]
rlcarey Offline
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Registered: 07/16/01
Posts: 68315
Loc: Galveston, TX
Not sure why you would unless the agency required it.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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