lock expired, who pays the fee to extend

4 Replies

Hi,

I'm doing an FHA loan and today the lock expires (current rates are .25 higher than my rate), I was on top if them since it was urgent from me and the loan officer wasn't to happy with this and basically they took their time, on my side my only delay was being late 3 days bc I couldn't find a contractor for a quote that FHA needed. Now I have to extend the lock by paying $320, I feel that at least they should share this cost, not sure if im going to run against a wall or is it common for a bank to help?

It is not likely that the bank will help cover this fee but you can always ask. If the loan officer thinks you will walk away from the loan they will have done a lot of work for almost nothing. They will make a lot more money if they close the loan and may surprise you.

@Roy Gutierrez  IF the delay caused by your contractor was the reason for missing the lock period, then you have no recourse in my opinion.

IF the process by the Mortgage Broker caused you to delay the Contractor or was somehow the Broker's fault that you missed the lock period, then simply ask your Broker to take a reduction of their Yield Spread Premium (YSP) to get you back into the interest rate range you wanted OR they can reduce one of their fees by the $320.

IF the Broker claims to be handling your loan for NO YSP, then say "Thanks!" and be sure to let the Broker know that you will be reading the HUD1 to see if the Broker was paid out a YSP.

When I Brokered Mortgages, I would not lose a lock period to begin with but in the slim chance I did, I would not lose an entire file over $320 for sure..lol

Now if YOU caused the lock to expire for whatever reason...then suck it up butter cup and pay for the extension or simply re-lock at the newer rate.

Good Luck and Stay Firm!

It all depends on the broker, as previous posters have said they aren't going to lose the deal over $320 so you can ask them to help you out.However,   as for YSP credits if someone is doing lender paid compensation most lenders wont allow you to change your comp as they lock you in on a quarterly basis so it has changed a little.  It never hurts to ask and if your broker is creative im sure he or she can figure something out

Thanks guys,

Well, the story is that I was on top of the loan officer asking about timelines, she didn't like that and basically told me stop asking and she will let me know when it's ready and of course I sent her an email back telling her among other things that I have a right to know the status in the process and if she doesn't like questions I can go somewhere else (I should have done that!), no return calls, hard to reach them on the phone, attitude, awful customer service, I've had to bite my tongue b/c they have me by the balls b/c I need to close and I'm forced to be nice, so I'm very sure that they won't want to give me credit and I fear if I complain and ask for a credit they might delay my closing on purpose, FredT the person is a "mortgage consultant" who works for the bank; 80% of the delay has been the bank and the only delay on my part was the 3 days of trying to find a contractor otherwise I've been extremely pro-active sending them stuff to get things going. I was thinking of writing an email to a higher up but my fear is that if this might backfire and again delay my closing, so maybe let it go and write the letter after closing, to think when I started the process with them they put down Quicken Loans which I mentioned that I had another loan with, I would gladly pay a higher rate and go withe Quicken rather than these jokers (quicken did offer me a lower rate but that's another story).

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