Rate Lock Policy

Rate Lock Policy

​Lock Extensions

Brokers may submit requests to VIP Mortgage, Inc. for an extension of time to close a loan that has been locked. A lock can be extended for any of the time periods listed below, but will not be extended more than twice or for more than a total of 30 days from the expiration date of the original rate lock commitment.

If the request is approved, the price for the extension will be adjusted as follows:
  • 15 bp (.15) for 5 days
  • 30 bp (.30) for 15 days
  • 50 bp (.50) for 30 days.

It is expected that the cost of any extension is incurred by the borrower, which may trigger re-disclosure due to change of circumstances. Loans that have not yet reached the Underwriting queue will not be eligible for extension.

Lock Renegotiations– Conforming and Government Product Only 

To be eligible for such consideration, the loan must be submitted to underwriting, AND the appraisal must have been ordered.
  1. The market price improvement must be equal to or greater than 100 bps (1%) to be eligible for a Lock Renegotiation.
  2. If the improvement is between 100–175 bps at the initial locked rate, new pricing will be calculated by taking current market price at desired rate, same lock period, less a .5 renegotiation fee. In the event market has improved more than 175 bps, please call lock desk for renegotiation options. ALL benefit as a result of any renegotiation must accrue 100% to the benefit of the borrower (e.g. reduced rate or increased borrower credit).

Lock Renegotiations are available on a one time basis only so any price improvement after a lock has been renegotiated once already will not be eligible for further renegotiation.

The Lock Renegotiation policy as outlined above applies to Conforming and Government product only. 

Lock Cancellations/Expirations

In an effort to maximize hedge efficiency, any locked loan that is identified as not closing, must be communicated to VIP Mortgage, Inc. immediately via e-mail. Any lock that has been canceled or has expired without closing or being extended must go through a 30 calendar day waiting period to be eligible for re-lock. Please cancel your locks on inactive loans via email with your Account Excecutive. Any re-lock request under consideration during the 30 day waiting period will be subject to worst case pricing.

Any locks not extended on or prior to expiration date will be subject to cancellation without advance notice, regardless of market conditions.

Delivery Requirements

All loans on which advance locks have been placed are expected to meet a 7 day file delivery to underwriting on 30 day locks and a 15 day delivery on 40+ day locks in order to provide ample time for underwriting and closing. File delivery time frames are mandatory. All processors and loan officers should take the necessary steps to ensure loans are delivered within the allotted time frame. Loans not delivered on time without prior arrangements are subject to cancellation without notice. 

Program Changes

Pricing on locked loans that have undergone program changes will be handled on a case by case basis. Locks that are on loans which subsequently change programs from the initially locked program and / or investor, will be re-priced. Generally, this involves a worst case re-pricing, although these situations are diverse and will be handled based on the specifics of the program/investor/transaction/market.