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#2271983 - 06/22/22 09:10 PM Rate Lock Extension - Fees and Disclosure
mnbanker09 Offline
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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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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.
The opinions expressed here should not be construed to be those of my employer:

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#2272038 - 06/23/22 07:02 PM Re: Rate Lock Extension - Fees and Disclosure mnbanker09
Truffle Royale Offline

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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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