What is Rate Lock Day?

Question:

When a loan is locked in with an investor, and the bank closes the loan, but then was unable to sell the loan to the investor, the loan is subsequently relocked with another investor. The lock day now shows that the file was locked after the origination date. What date do we use when figuring the rate spread? The rate does not change, just the investor.

Answer:

The regulation states that you use the date the rate is set for the final time before closing. Based on the information provided, the rate was not re-locked with the borrower - just a different investor. I would say in that case, use the initial lock dates.

Vendor:

Centrax