Let me pose a couple of scenarios. We have no formal rate lock agreement for the loans I'm questioning. Customer applies on 11/2. Banker quotes rate under stipulation that we risk base price. Underwriting decisions loan and determines rate on 11/4. At this point would the rate lock date be the date set by underwriting on 11/4. Throughout the loan process, underwriting may rerun the loan through risk manager for dti or ltv purposes but rate never changes from that set on 11/4...So again, would the rate lock date be 11/4...Same scenario, same dates....however appraisal comes back low. Underwriting runs through risk manager on 11/15 and because of ltv the rate changes on 11/15. Should the rate lock date now be 11/15 the date the final rate was reset by underwriting.
Or for consistency, should we just put a policy in place that says the rate lock date, is the last date that the loan is run through risk manager....rate change or not because ultimately that is the final date that the rate COULD change.