Rate Lock Fee

Hello

How does everyone handle the collection of rate lock fees and the LE / CD.

We collect a rate lock fee to offset any pair off fee's from FNMA, however if the loan closes we refund the fee.

If we put it as an origination fee - it will affect our APR. We would then have to provide a lender credit for the same amount in order to refund it on the CD.

How do others handle the collection of rate lock fee's and does anyone credit the borrower back at closing?

Do you really have that many that don't close that you need to collect pair off fees as a rate lock fee?
If it's a once in a blue moon type of occurrence, we would treat the pair off as a business expense and not try to recoup it from the borrower.

tell that to management ... I agree and have even suggested instead of Mandatory Delivery we elect Best efforts ... they want to collect the fee.