A lock can be extended for any number of days needed to complete the loan closing but will not be extended more than 30 days and a maximum of 2 extensions for Non-QM products and a total of 60 days for Mandatory Locks, from the expiration date of the original rate lock commitment. If more time is needed, the loan will be relocked at Worse Case pricing.
It is expected that the cost of any extension is incurred by the borrower, which may trigger re-disclosure due to a change of circumstances.
Mandatory/BE commitments are extended in accordance with the cost structure below:
- Non-QM extension cost (must be in increments below) =
- 5 days = -0.075
- 10 days = -0.150
- 15 days = -0.225
- 20 days = -0.300
- 30 days = -0.450
- Conv/Gov extension cost = 1 bps per day
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