Corporate. Overview. Rate Locks. Wholesale Rate Lock Policy

Transcription

1 Corporate Lock Desk Wholesale Rate Lock Policy Overview The Lock Desk Department will issue the daily rate sheets via as well as upload to site every morning M-F. Sometimes pricing may be delayed due to market volatility or other market related issues. We will always do our best to deliver rates as quickly as possible. A loan is considered locked once the request has been reviewed, accepted, and acknowledged by the Lock Desk Department. Your time of lock will be honored if a price change were to occur. Rate Locks Wholesale rate locks may be requested through site. Rate locks will be priced based on the rates in effect at the time the rate lock is received by the Lock Desk Department. The Lock Desk will accept locks from the time we upload pricing (Typically between 7:30-8:00 AM PST) till 4:30 pm PST. Confirmations of the lock request will automatically appear once sent through the lock request engine. An confirmation will be sent to the contact person on record once the Lock Desk has verified the lock request. Acceptable submissions for rate lock requests: Rate locks should be requested through site only Rate locks are NOT CONSIDERED VALID if they are faxed, ed or verbally communicated. In the event of a system failure, power outage or some other uncontrollable situation we will accept locks by fax, phone or but we will notify you when those situations occur. Price quotations for rates or products not on the rate sheet (off-sheet pricing) may be requested by contacting the Lock Desk Department. However, the pricing you receive is an indication only and until the rate and term are verified and agreed too. Rate locks are not considered received by Finance of America Mortgage Lock Desk if they are sent directly to Finance of America Mortgage employees' individual address, personal address, verbally communicated, or anywhere other than specified option listed above. Finance of America Mortgage LLC REVISED AS OF 9/28/2015 Page 1 of 5

2 Maximum Rate Lock requests are subject to an approved maximum rate by the Underwriter. If the requested interest rate exceeds the maximum rate approved by the Underwriter, the lock request will not be processed. Rate locks that exceed the maximum allowable rate on the loan approval must go back to the Underwriting Department for approval of the higher rate or different program. Lock Terms Loans are generally locked for 15, 30, 45 or 60 days. 15 Days Lock= ALL PTD'S MUST BE SIGNED OFF (CTC status must reflect in BYTE) 30 Days Lock=Loan must be SUBMITTED STATUS (Must meet Finance of America Mortgage minimum submission requirements) or higher Days Lock= ALL STAGES including PRELOCKS (must be request by obtaining a PRELOCK form at ) Pre-locks The following are requirements and restrictions to pre-lock loans 1) Broker has 6 BUSINESS DAYS to satisfy PMAC minimum submission requirements 2) COMP PLAN CAN NOT BE INCREASED (for the following month) Compensation will be based on the comp plan in place for the month of the pre-lock date. 3) Pricing is subject to change once the file has been submitted and underwritten. 4) Broker must be approved and in good standing with Finance of America Mortgage. 5) Fannie Mae M4 (more than 4 financed) loans are NOT ELIGIBLE. 6) Jumbo pre-locks must be submitted by 3:30pm pst and use the Jumbo specific pre-lock form. If the form is not completed in its entirety, the lock will not be accepted. 7) 45 days minimum. An exception to the 45 day rule will be for FHA Streamlines and VA IRRRL s- Finance of America will continue to accept Pre-Locks for 30 days on these loan types

3 Lock Extensions- Prior to Lock Expiration A rate lock extension may be requested by the client through the Lock Desk Department s address or by calling on or before the original rate lock expiration date after final underwriting approval and prior to submission of the document request. Dry funding states (i.e. AZ, CA, NV, OR, UT, WA) require a minimum of five (5) business days (not including Saturday, Sunday, or Holidays) remaining on the original lock request to order loan documents. If five (5) business days do not remain on the existing lock request at the time a document request is submitted, an extension will be required prior to the release of loan documents. Wet funding states, which includes all states not previously mentioned as dry states, require a minimum of one (1) business day (not including Saturday, Sunday, or Holidays) remaining beyond the rescission and/or closing date. All rate lock extensions must be requested by 4:30 pm PST. A lock may be extended based on the fee table below. For an extension, Finance of America Mortgage currently adjusts the price and number of days based on the schedule below: Extension Before Lock Period Expiration (Exhibit A) Calendar Day Requested Extension Fee

4 Lock Extensions After Lock Expiration (Re-locks) A lock is considered a re-lock if it occurs within 60 days of the expiration. All re-locks will be priced based upon the worst case of the latest locked commitment price including prior extension fees to the current market price. Re-locks are only available if the rate lock has expired and must be requested through the Lock Desk Department s via or by calling the Lock Desk department before 4:30 pm PST. All loans can be re-locked one time. Additional re-locks are on a case-by-case basis as determined by the Secondary Marketing Department. Current Market Better Calendar Day Requested Relock Fee 10 Original ALL IN Lock Price plus.25 bps > Original ALL IN pricing plus.25 relock fee for 10 days. Additional days will be charge based on Exhibit A fee schedule above. Example: Loan originally locks for 25 days and has expired. In this scenario, you will compare original 30 day price (including any applicable extensions fees) to the current market price at the same lock term. If current market is BETTER, go back to the original lock day ALL IN PRICE(assume.50 credit) plus another 25 bps so your new relock ALL IN PRICE is.25 credit for 10 days. Current Market Worse Calendar Day Requested Relock Fee 10 Worse case price > Worse case pricing for 10 days. Additional days will be charge based on Exhibit A fee schedule above. Example: Loan originally locks for 25 days and has expired. In this scenario, you will compare original 25 day price (including any applicable extensions fees) to the current market price at the same lock term. If current market is WORSE, use current market (in this scenario 25 day term) ALL IN PRICE (assume 1.0 credit) so your new relock ALL IN PRICE is 1.0 credit for 10 days.

5 Changes to Rate Locks If the Underwriter must make any adjustments to a loan that has been previously locked that affects pricing they will notify Lock Desk. The necessary pricing adjustments will be made and the Account Executive notified who is responsible to notify the broker of any rate or price change. The following policies apply when changes are made to a loan previously locked that affects the pricing: Loan Amount Changes that result in the loan amount adjusting may affect the cost of add-ons. Any new loan amount adjustment required, based upon the old loan amount requested, will be based upon the then current loan amount price adjustment. Base pricing will be consistent with the date and time of the original lock. Loan Program Changes in loan program will be priced at the worst case of the original lock date pricing or current market the day the change is being requested. In addition, loans cannot be locked under the new program until the Underwriter has approved the loan. Any type of program change will be subject to worse case pricing including those loans whose programs are changing back to one it was previously approved under. Loan Term Changes in loan term will be treated the same as changes to the loan program. Note Rate Changes in interest rate will reflect pricing from the original lock date pricing. Loan-to-value Changes that result in the loan LTV may affect cost of add-ons. Add-on with a different LTV will be consistent with the date and time of the original lock. Lock Period See section on Extensions for lock period extensions. Lock period reductions are not allowed after a rate lock has been accepted. Note: Changes required to the rate lock due to changes made to the loan will go into affect only after the Underwriter s approval if a change is necessary.

6 Rate Lock Cancellations Rate-lock cancellations will only be accepted if made within 2 hours of the requested lock. If rate lock cancellations are received after the 2 hour window specified above, the loan will be subject to the re-lock policy detailed above. Cancellation of a rate-lock must be requested by ing the Lock Desk Department before 4:00 pm (PST). Verbal cancellation requests will not be accepted. Any requests to cancel a rate lock that occurs after a new rate sheet has been issued will not be granted under any circumstance and will be subject to price changes as described above if any characteristics of the loan changes. Contact Information Lock Desk Lock Desk wholesalelocks@financeofamerica.com Frequently Asked Questions: Does the lock follow the borrower or property address? The lock always follows the property address. What is the cutoff for locks and extension? Lock cutoff and extensions/relock is 4:30 PM PST. How do I extend my locks? Extension request can be ed to wholesalelocks@financeofamerica.com before 4:30 PM PST. How many times can I extend a lock before it goes worse case pricing? A lock can be extended a maximum of two times. After 2 nd extension request, it will be based on worse case pricing.