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#337579 - 03/23/05 06:18 PM Rate Lock Extension Fee

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?

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Lending Compliance
#337580 - 03/23/05 06:23 PM Re: Rate Lock Extension Fee
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TB 12
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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.
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