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Updated Lock Policy

Revised January 20, 2022

 Pricing Active Times: Monday-Friday 9am-7:00pm Central (exceptions may apply) 

Lock Desk Email Address: lockdesk@elevenmortgage.com 

Additional disclosure requirements for Wholesale

  • All new loans: Initial disclosures must be requested within 24 hours of registration of a full application (address is not TBD) or the loan will be cancelled at the end of day 2 (including locked loans). 
  • Any existing locked loans that are not disclosure requested by 3 PM CT on day 2 will be cancelled and the lock will be cancelled. The lock will not be reactivated on a new registration of the same loan. 

Note Rates below 2.50% – all programs 

  • 45 day maximum lock 
  • Any extension is subject to worse case/relock policy 

NEW LOCK REQUESTS: 

Secondary Marketing will accept lock requests submitted through the Optimal Blue Pricing Engine. Loans cannot be accepted via voicemail or email. In the event of a service outage on the website, brokers may contact the lock desk via phone or fax the request with a phone and email follow-up to ensure the request is received. Brokers are responsible for requesting initial lock-ins on their loan applications. 

Locked applications on banked loans must fund on or before the lock expiration date. Each broker must monitor their pipeline status and ensure the loan package is received in a timely manner. For any loan which will fund after the lock expiration date, the broker is responsible for requesting a lock extension before it expires. 

To be eligible for a rate lock, the rate lock request must have valid loan terms, borrower 1003 information, credit scores, property type, occupancy, purpose and property address including City, State and Zip code. A missing Zip code or Social Security Number may delay acceptance of the lock request and may affect the pricing. “To Be Determined” (TBD) is an unacceptable address for rate-lock purposes. In addition, the representative credit score must be provided for each borrower. If this information changes throughout the loan process a pricing adjustment may be incurred to the rate lock commitment. Lock requests received with inaccuracies will be rejected and an email notification will be sent. You will be required to validate your loan information and re-request the loan to be locked again with the correct information. 

The broker is responsible for providing accurate information to ensure an accurate lock/price. Any pricing changes (Such as Product code, interest rate, LTV, FICO, loan amount etc.), whether caused by the borrower or not, may be subject to revised pricing at the broker’s expense. Upon discovery of the change, the broker must inform 11 MORTGAGE in writing via email to lockdesk@elevenmortgage.com. 11 MORTGAGE will review the change and determine whether new pricing is warranted. If new pricing is to be applied, 11 MORTGAGE will approve the changes and inform all related parties. 

QM POINTS AND FEES 

All loans must meet QM points and fees limits of 3%. The interest rate and/or borrower paid compensation must be adjusted on any loan failing the points and fees test. Loans that are passing, but later become ineligible due to increased fees or cost will have to be adjusted accordingly to meet this requirement. Loans that are unable to meet this requirement will be denied, and the lock will be cancelled. 

LOCK-IN PERIODS 

The broker is responsible for verifying the status of a loan application prior to requesting a rate lock. 11 MORTGAGE will accept lock-ins for various lengths of time as follows: 

  • 15 days 
  • 30 days 
  • 45 days NOTE: this is priced better than 30 days in some cases 
  • 60 days 
  • 75 days 

EXTENSIONS 

All lock extensions must be requested prior to the lock expiration. Locks may be extended up to two times, at a cost. To be eligible for extension the loan must at least be in the underwriting approved status. Extension options are: 

  • 5 days for .08 bps 
  • 7 days for .125 bps 
  • 10 days for .25 bps 
  • 15 days for .375 bps 
  • 30 days for .50 bps 

Loans are allowed up to 2 lock extensions (not to exceed 30 days combined) at the above cost. Third or more extensions are subject to worse case pricing and relock policy below 

WORSE CASE PRICE POLICY & RELOCK 

Worst case pricing is calculated by comparing the original total price plus applicable extension fees, against current market total price. The lower price of these calculations will be applied. Please note at a minimum the cost for a worst-case lock extension is .50 for an additional 30-day, shorter-term worst case lock extensions are not available. 

In the event of a worst case relock, the pricing is reset to market for an additional 30-day lock period. If additional time is needed on the lock, the extension policy above will apply. 

The following are situations where worst case price may apply: 

  • Loan is locked incorrectly based on 11 MORTGAGE program restrictions 
  • Loan is locked with incorrect address 
  • Lock is allowed to expire 
  • Lock is cancelled due to loan being denied or withdrawn as described in this lock policy 
  • Any other loan changes that result in loan changing security or coupon 

Certain programs like ARMs, etc. may be subject to additional investor restrictions and price adjustments. 

DENIED LOANS: 

  • If a loan is denied, the lock period is terminated. 
  • If the reason for the denial is remedied and the loan is resubmitted under a new loan number and approved within 31 days of the denial, a written request must be submitted to lockdesk@elevenmortgage.com. The loan may be subject to a new rate/points/fees, which will be communicated to the broker and applied to the rate lock. 

WITHDRAWN LOANS: 

  • If a loan is withdrawn upon the request of the applicant, the rate lock period is terminated. 
  • If the loan is resubmitted under a new loan number and approved within 31 days of the withdrawal, a written request must be submitted to lockdesk@elevenmortgage.com. A new rate and additional fees may be applied by 11 MORTGAGE. 

RECOMMITMENT (Loan program changes) 

Prior to Lock Expiration 

Program and interest rate changes on similar products (i.e. 30 yr. fixed) go back to date of original lock request. Changes on ARMs (Fixed to ARM, ARM to Fixed), etc. are subject to worse case pricing. 

Program changes will incur a minimum .125 % recommitment fee. 

The branch is responsible for changes to loans after a lock that result in a price adjustment at the time of closing, funding or in servicing (i.e. incorrect credit score provided at the time of lock, incorrect LTV, etc.). 

EXCEPTION PRICING 

Exception pricing- Loans considered “underwriting exceptions” or “investor exceptions” will be subject to exception pricing adjustments. 

PULL THROUGH RATIOS 

11 MORTGAGE requires brokers to maintain and acceptable lock pull through ratio. Brokers who fail to maintain acceptable pull through ratios will be subject to additional pricing adjusters. In the event that the pull through ratio becomes a concern, the broker will receive a report showing their lock pull through ratio compared to their peers. 

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