We have a file where we locked the interest rate with the borrower in August. The appraisal came in lower than expected so the borrower had to pay a discount point in order to keep the interest rate he locked in August the same. What date do we use for the Last Rate Set Date for the new QM rule and HMDA? The original lock date or the date we added the discount point to keep the rate the same?

When the discount point was added to the loan, that would be your date. They could have opted for a higher rate without the discount point or pay the fee and get the lower rate, therefore that was the date the rate was set for the final time.

Here is another bit of info I forgot to add. We were quoting the discount from an internal rate sheet that was effective as of the August lock date. Would that change the scenario?

Not sure how - the rate was not set until the borrower agreed to pay the discount point. They had to have also been offered the loan at par or that discount point would not be bona-fide.

I have one more scenario I need help with to figure out this whole last rate set date issue for QM and HMDA....if we lock a rate with our customer and the agreement has an expiration date, but the file takes a while to process and let's say we choose not to (or forget) to update the lock agreement with the extended expiration date, is our last rate set date going to change even though we are not changing the rate?

I would not think so.

The appraisal came in lower than expected so the borrower had to pay a discount point in order to keep the interest rate he locked in August the same.

I'm curious. If the lock agreement had not expired does the contractual agreement between you and the consumer allow you to charge the additional fee under certain circumstances?

If not and if it was me you would be honoring the rate you agreed to lock in if the agreement had not expired or the closing was delayed through no fault of mine. It's not my fault you jumped the gun locking the rate.