Effective October 21st 2013, Gateway Mortgage Group will offer extended lock periods to accommodate the new construction of a primary residence. Extended locks will be available for 15 or 30 year Conventional, FHA, and VA loans, with a maximum loan amount of $417,000. The product codes are: CF30EL, CF15EL, F30EL, F15EL, V30EL, and V15EL. The lock periods are defined in the table below.
|Extended Lock Reference Table|
|Lock Period||Extended Lock Adjustment|
|90 days||60 Day Base + 0.375 to Rate|
|120 days||60 Day Base + 0.500 to Rate|
|150 days||60 Day Base + 0.750 to Rate|
|180 days||60 Day Base + 1.000 to Rate|
If interest rates improve during an extended lock period, a client may float down once and it must be prior to closing. The prices available must be chosen from the 21, 30, or 45 day lock periods in the current market. If the float-down is exercised, the lock expiration date will be the sooner of the lock term selected at float-down or the original lock expiration date. Lock extensions after the float-down are subject to Gateway’s extension policy (Client Guide Ch. 3). Loan level price adjustments (LLPA) are based on the original lock date or the date the float-down is exercised.
Lock Fee & Agreement
An extended lock requires a lock fee to be submitted within 5 business days from the original lock date. The lock fee is 1.00% of the total loan amount at the time the loan is locked. The lock fee will be refunded on the date the loan is purchased by Gateway. Lock fees for denied loans will be refunded, provided the reason for denial is not caused by failure to provide requested documentation.
A copy of the executed extended lock agreement and a check for the lock fee must be sent by express mail, for tracking purposes, to:
Gateway Mortgage Group, LLC
Attn: Judy Strain c/o Accounting
4201 N. State Highway 161, Suite 100
Irving, TX 75038
Please direct questions to your sales manager