Can I get opinions on your process for documenting the rate lock date used to calculate the rate spread ratio. Our rate lock agreement with the borrower does not include a rate lock date and we are having a debate with the mortgage department on why we can't use what is on the system. We have always required documentation to be in the file. Does anyone rely on the system for this date and would examiners find that acceptable? Also, does anyone use the rate lock date set with the investor?

Thank you for your comments.

"Our rate lock agreement with the borrower does not include a rate lock date"

How in the world can you have a written agreement with the borrower that is not dated? You need to be talking to legal counsel if that is the case.

You report the date the rate is last set with the borrower.

If you use a formal rate lock agreement then that date would be the date you executed the rate lock agreement with the borrower. Without a date on the agreement there really is no way for you to have documentation in file to document the date the rate was locked.

We don't use a formal lock agreement and we use the last date the rate was locked with the investor.

The rate lock agreement we use is signed by the customer, but the rate lock date is not documented. I agree it is the last rate set with the borrower; however, do you refer to the system to validate this date or do you use a certain document within the loan file? I'm sorry if I'm not clear.. We are getting push back from Mortgage on requiring source documents for HMDA testing instead of comparing system entries.

If you have a date on your LAR that does not match the date on your written rate lock agreement that is signed by the customer, then let "Mortgage" pay for, perform the lookback and refile the LAR when it is ordered by your examiners.. Everything should be tied back to original source documents.

We are getting push back from Mortgage on requiring source documents for HMDA testing instead of comparing system entries.

How can "Mortgage" document the date entered into the system is accurate? In other words how can the examiners tie back to that date.

When we used formal rate lock agreements we could always tie the system date to the date on the rate lock agreement.

Now we use a form that identifies the investor the rate is locked with, the date the rate was locked with the investor, the rate and the date the lock expires. It is initialed by the appropriate approval authority and kept with the file. We can tie the "rate set" date back to that document.

Perfect! Our argument has been challenged and I needed backup. Thank you, Dan!!