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#2247298 - 01/06/21 10:29 PM Rate Extension Fee for Re-Lock
Vive Accommodare Offline
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Vive Accommodare
Joined: Apr 2013
Posts: 581
Compliance
If a loan has a rate lock at an initially lower rate, was extended, but at a higher rate, then not disclosed to the borrower would we be in violation of 19(e)(3)(iv)(D) for not disclosing the higher rate amount to the borrower? Further more, if when we extended the lock there wasn't a charge, but now there is due to another extension could we pass the fee along to the borrower if it was within three days?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2247299 - 01/06/21 10:35 PM Re: Rate Extension Fee for Re-Lock Vive Accommodare
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,364
Galveston, TX
The first rate lock triggers an automatic LE within three business days. After that, you only have to worry about capturing any new fees involved on a re-lock or extension under a changed circumstance.
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#2247301 - 01/06/21 10:42 PM Re: Rate Extension Fee for Re-Lock Vive Accommodare
Vive Accommodare Offline
Platinum Poster
Vive Accommodare
Joined: Apr 2013
Posts: 581
Compliance
so even though the second rate lock event was for a higher rate, we are still okay under TRID due to disclosing the initial rate lock to the borrower?
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#2247309 - 01/07/21 02:19 PM Re: Rate Extension Fee for Re-Lock Vive Accommodare
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,364
Galveston, TX
A change in the interest rate is not a changed circumstance and a rate lock extension or a new rate lock falls under 19(e)(3)(iv)(C).
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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