Lock Extensions
It is MCFI’s policy to close loans prior to their lock expiration dates, with the
understanding that for a variety of reasons, loans will not always close during the
original lock in period. Lock in extensions, or re-locks on loans that have expired,
are granted to curb the cost associated with fallout. Extensions and re-locks cost
MCFI money and every step should be taken to limit their use. When requesting
an extension or re-lock, proper procedures must be followed.
Standard Extension Fees
- 0.125- 5 business days
- 0.250- 10 business days
- Maximum extension allowed is one week. Extension fee is 0.500 cost. Additional extension will trigger a relock at worst case pricing.
- Please see page 5 for more detail
Extension requests must be received before the lock cut off on the day of
expiration.
All lock extension requests must be submitted via e-mail to
lock@mcfunding.com.
Lock extensions are not available when the lock has expired
Maximum Extension Periods:
- Once the lock has been extended for the maximum allowed extension days, the lock becomes subject to relock at worst case pricing
- Please see page 5 for details on maximum extension periods.
Lock Renegotiations
Lock renegotiations must meet the following criteria:
- Broker’s commission may not increase from original locked in price.
- Loan must be approved and/or READY for DOCS. Any others would be on a case by case with a certainty of closing based on credit.
- Rate renegotiations are not automatically applied & must be requested via e-mail to lock@mcfunding.com.
- Similar to lock requests, only brokers & their authorized personnel are permitted to send rate-renegotiation requests.
- Renegotiations are subject to a 0.500 relock fee. An additional redraw fee may apply if docs have already gone out.
- Renegotiations are not accepted on files that already have docs back.
- Renegotiations are limited only to AGENCY FIXED (FNMA/FHLMC) and FHA products.
- A renegotiation does not change the existing lock expiration date. Additional extension(s) may be subject to standard extension fees.
If a lock renegotiation request qualifies by meeting above described
requirements and is approved by the lock desk, MCFI will allow the Borrower
to execute a new lock at current market at the original lock period.
