Disclosing discount rates

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Question:

If our bank does not offer a rate lock program and all of our loans are fixed rate loans, can a buyer purchase discount points to lower the interest rate? If they can, do they have to sign a form reflecting the discount rate or can we just disclose the discount and fee on the loan estimate?

Answer:

Required rate lock agreements are either governed under State law or are investor requirements. You also need to talk to your legal counsel. Having such agreements that are not reduced to writing are subject to lawsuits.