Mortgage News

VHDA Rate Lock Policy Change

October 1st, 2013

Note the following VHDA Rate Lock Policy Change.  For more information, visit 

http://www.vhda.com/BusinessPartners/Lenders/UpdatesAnnouncements/Pages/10012013.aspx#b

To:          VHDA Originating Lenders

Date:      October 1, 2013

RE:         VHDA Rate Lock Policy Change

Effective November 1, 2013, VHDA will implement a 60 day Rate Lock period for all loan programs to be more in line with industry standards.  The key elements of the new policy are listed below:

  • There will no longer be a "Reservation Period" or a "Commitment Period
  • No Reservation Fee will be required
  • Loans may be locked for 60 days.
  • Loans must close by the 60 day lock expiration date (Refinances must be closed, not disbursed, prior to the 60 day lock expiration date)
  • Loans must be delivered to VHDA no later than 10 days from the closing date (or disbursement date, if a refinance)
  • Extensions will be granted in 15 day increments, to a maximum of 60 days.  The cost of each extension is .25% of the loan amount, due to VHDA at the time of the extension request
  • No substitution of property, applicant(s) or Originating Lender is permitted.  Locked-in interest rates are non-transferrable.  A change in the loan program may require the loan to be re-locked at different terms
  • Pricing for a new rate lock on the same property that has been expired or has been cancelled for less than 30 days will be the higher of the previous lock or the current market rate
  • A change in property will require a new rate lock at current market rate

Loans may continue to be locked through the VHDA online lock-in system.  VHDA will continue to offer overnight price protection Monday night through Friday morning.  The lock-in system will be unavailable from Friday night at 9:00pm until Monday morning at 10:00am.  The lock-in system will be unavailable all federal holidays with the exception of Columbus Day.

VHDA is in the process of updating all documents to reflect this change. These documents will be available on vhda.com beginning November 1, 2013 and will be sent with a follow up announcement the last week of October.

We appreciate your support during the implementation of the new Rate Lock Policy.  This will better align VHDA with industry standards and enable us to more effectively adhere to secondary market demands.  We plan to offer other lock-in options when we transition to our new loan origination system in early 2014. 

Tidewater Home Funding

Tidewater Home Funding, LLC NMLS# 41552
(www.nmlsconsumeraccess.org).
Equal Housing Lender.

Licensed in Virginia, North Carolina & Florida.

VSCC Bureau of Financial Institutions, P.O. Box 640, Richmond VA 23218-0640, (1-800-552-7945) www.scc.virginia.gov/bfi

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