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#2271983 - 06/22/22 09:10 PM Rate Lock Extension - Fees and Disclosure
mnbanker09 Offline
100 Club
Joined: Jan 2018
Posts: 120
Applicant's rate lock agreement expires tomorrow. Last week, the applicant requested a rate lock extension due to the construction not being completed on time. Bank extends the rate lock with the investor for an additional 10 days; investor charges a fee. The bank is passing that fee to the borrower. Two questions:

1) Does the applicant need to sign a new rate lock agreement?
2) In what bucket would the rate lock extension fee be placed on the revised LE?

Thank you!

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Lending Compliance
#2271987 - 06/22/22 10:38 PM Re: Rate Lock Extension - Fees and Disclosure mnbanker09
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,893
Galveston, TX
Your contract with an investor has absolutely nothing to do with the consumer.

At rate lock extension fee is payable to the creditor, so Section A.
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#2272038 - 06/23/22 07:02 PM Re: Rate Lock Extension - Fees and Disclosure mnbanker09
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,355
and yes, my understanding is that you need a new rate lock agreement because the expiration date has changed. We also indicate the extension fee which the borrower agrees to by signing the new agreement.

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