Skip to content
GeoDataVision
Thread Options
#337579 - 03/23/05 06:18 PM Rate Lock Extension Fee
Anonymous
Unregistered

If a fee (which is a percentage of the loan amount) is charged to the customer by a secondary mortgage purchaser to extend the rate lock on a mortgage loan (collected by our bank at the time of extention, prior to closing), should it be on the 1098 as "points" and should it be on the GFE and HUD? If so, which line item?

Return to Top
Lending Compliance
#337580 - 03/23/05 06:23 PM Re: Rate Lock Extension Fee
TB 12 Offline
Power Poster
TB 12
Joined: Feb 2005
Posts: 6,559
Foxboro
In my opinion, it is not considered points. The fee is to extend the rate lock, and nothing else. As for the HUD, we put it in the 800 section. On the GFE, we didnt disclose it up front, since at the time of initial app, there would be no way of knowing if the fee was necessary. If you were aware of it up front, I would disclose it.
_________________________
Best QB Ever. Worst Defense Ever.

Return to Top

Moderator:  Andy_Z