Rate Lock Expiring

Posted By: ynot

Rate Lock Expiring - 12/26/18 08:42 PM

We have a situation where our rate lock is expiring on Friday Dec. 28th. We just received the clear to close and customer wants to close on Monday Dec. 31st. Can we extend the interest rate after the initial CD is issued? We will be issuing initial CD today.

Thank you for your assistance.
Posted By: rlcarey

Re: Rate Lock Expiring - 12/26/18 08:49 PM

What interest rate you make the loan at is a business decision. I assume you don't have an expiring lock with an investor.
Posted By: ynot

Re: Rate Lock Expiring - 12/26/18 09:17 PM

No, this is a portfolio loan.
We will honor the existing interest rate and will not charge a rate lock related fee. We will be issuing the initial CD today, on Friday the rate lock will expire, we will process a rate lock extension, therefore can we capture the rate lock extension in the final CD for closing on Monday?
Posted By: rlcarey

Re: Rate Lock Expiring - 12/26/18 09:22 PM

Not sure why you just don't get the extension out of the way with the initial CD, but you must have your reasons.
Posted By: ynot

Re: Rate Lock Expiring - 12/26/18 09:32 PM

We have never had this situation so close to closing and in between initial CD issuance and closing date. wasn't sure this was possible. We normally send an extension agreement to borrower as of the expiration date, they sign and send it back and we extend interest rate and reissue a revised LE.
thanks RLCarey