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Rate Sheet
Rate Sheets are distributed every day (a.m.) via fax and/or email to all offices
[brokers, loan offices, email, web]. Rate sheet changes may occur during the
business day. Rate sheets will again be distributed. Rate Sheets are subject to
change without notice based on market fluctuation and loan scenario changes.
Lock Hours
Loans may be locked Monday through Friday at the following times:
9:00 a.m. to 5:00 p.m. PST
(please see page 5 for program specific lock cut-offs)
Lock Periods
MCFI will offer lock-in protection for its customers for the following time
periods:
• 15 Day Lock (limited only to “clear to close” status on
Agency/FHA/VA/USDA & MVP2 only)
• 30 Day Lock
• 45 Day Lock
• 60 Day Lock- Not available on all programs. Please see rate sheet for details.
Lock Procedure
MCFI’s Submission Policy prohibits Loan Officers/Processors from
committing to a rate and point guarantee and not completing the submission
package for that particular application. An incomplete submission increases
MCFI’s exposure to interest rate risk and may result in extensive losses to
MCFI. A Loan Officer/processor’s failure to complete their submission
package does not excuse him/her from honoring a commitment if rates
increase, nor delivering at the original rate and points if rates decrease.
Lock requests must be requested on-line (by authorized broker personnel)
through the pricing engine. The broker office is responsible for managing new
& existing lock registrations. MCFI (operations & sales) personnel are not
responsible for managing a broker company’s pipeline.
Complete loan application package must be received at MCFI no later than
seven (7) business days from registration.
- If a complete loan application package is not received by the 7th day ofregistration, the loan may/will be subject to cancellation
- Loans with locks cancelled due to late delivery must be re-locked.Price will be set as described below.
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Pre-lock Procedure
Generally, MCFI requires a complete submission prior to securing a locked rate.
However, select programs are allowed the opportunity to PRE-LOCK for 30, 45,
or 60 days upon successful registration
Successful registration requires a FNMA3.2 upload for program eligibility.
Registered pre-locked loans are allowed up to 7 business days (w/ a 12pm cutoff on the 7
th day) to complete their submission package. Failure to meet the
submission deadline will result in either the lock cancellation or worst-case
pricing as determined by current market after the 7
th day.
Note that ALL locks are secured by borrower’s (&/or co-borrower’s) information
(SS#) & NOT by the property address (i.e. In the event that a new application for
the same borrower is registered in the system, the original lock will be applied &
compared to current market for worst-case determination). The new lock will be
dated upon time of registration
Lock Expirations
If a customer has a rate lock that has passed its lock expiration date or the lock
was cancelled because the loan was not delivered by the required date and the
customer wishes to initiate a new lock, the price is calculated as follows:
AGENCY FIXED (FNMA/FHLMC) & FHA/VA PROGRAMS:
• Price will be set by comparing the immediate price on the day the loanwas originally locked-in to the current day’s price and taking the worst price for the same lock period, i.e. original lock = 30 days, re-lock = 30 days. The lock period may be upgraded [from 45 day to 30 day, or 30 day to 15 day (if “clear to close”)] once the lock has been expired for aminimum of 30 days.
• If the lock has been expired for at least 30 days, the loan will be re-locked at the current market.
Please contact the lock desk for Jumbo and Non-QM/Portfolio programs.
Re-Lock Process
Locked loans that have passed their lock expiration dates or loans with
locks cancelled because the loan application package was not delivered by
the required date, may be re-locked by e-mailing lock@mcfunding.com
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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.
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Midday Price Change
Volatility in the mortgage backed securities market may require Secondary
Marketing/Capital Markets to issue revised pricing (up or down) during the day.
Lock Desk will notify its brokers of a midday price change by email.
- Price change is effective immediately upon pricing engine update.
- On-line lock requests will be suspended until rate & premiums are updated.
- It is incumbent upon the Loan Officers/Account Executives to stay up to date with current market conditions and posted rates and prices, especially prior to any consultation with a potential borrower.
Program Changes
When a customer wishes to change loan programs after the loan has been lockedin, the following applies:
- All loan program changes must be re-locked with Secondary Marketing.
- DU & LP program changes w/ the same type & term will retain pricing from the original lock date.
- Program changes from AGENCY FIXED/ARM to FHA (or vice-versa) will be subject to current market pricing. Resubmission may be required.
- Program changes to, from, or between Jumbo or Non-QM programs may be subject to worst case or current market pricing. Resubmission may be required.
- Changes from Fixed to ARM or vice-versa will be subject to worst-case pricing (regardless of lock expiration)
Lock Cancellation
Locked-in loans where MCFI has not received a complete loan application
package within seven (7) business days after the lock request, are subject to worstcase and/or cancellation.
Cancellations
Exposure to interest rate risk is unacceptable on cancelled loans. The integrity of
MCFI’s pipeline is extremely important in controlling MCFI’s interest rate risk
and as a tool for pricing competitively. Proper management of MCFI’s position
can only be done if our pricing desk has accurate information about the amount of
loans with guaranteed rate and points. Each Account manager is responsible for
the regular review of loans in process, the canceling of loans that have been
declined, or withdrawn. The pipeline should be reviewed daily and inactive loans
purged from the system immediately
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| LOAN PROGRAM | PRE-LOCKS? | PRE-LOCKS? | LOCK CUT- OFF (PST) | LOCK CUT- OFF (PST) |
|---|---|---|---|---|
|
AGENCY FIXED & ARM
(AGN, HB, AGNP, HBP, CONF, HR,
HRHB, HP, SCHP, MAX, MAXHB, H1,
MAXRN, AGNRN, AGNRP, MAXRP,
21BD, 21HBD) |
30, 45, or 60
days @
“Registered” |
15 day lock @ “CTC” |
5 PM |
0.125- 5 business days
0.250-10 business days
(max 2 extensions not to
exceed 28 days total) |
|
GOVERNMENT
(FHA, VA, USDA) |
30, 45, or 60
days @
“Registered” |
15 day lock @ “CTC” |
5 PM |
0.125- 5 business days
0.250-10 business days
(max 2 extensions not to
exceed 28 days total) |
|
PLATINUM JUMBO1
(PJ, PJE)
|
Purchase45 days @
“Registered”
|
Refi- 45 day lock @ “In
Underwriting”
30 day lock @
“Approved”
|
2 PM |
0.125- 5 business days
(60 days max extension) |
|
ELITE NON-QM & DSCR
(EZ, EZB, EZP, EZ99, EZA, EZU, EZD)
|
x |
30 or 45 day lock @
“In Underwriting” |
5 PM |
0.500- 7 calendar days
(7 days max extension) |
|
MEGA VOE AND P&L
(MVP, MBP)
|
x |
30 day lock @
“Approved |
5 PM |
0.250-5 business days
(5 days max extension
when current market is
worse) |
|
GOLD JUMBO
(GJ)
|
Purchase45 days @
“Registered”
|
Refi- 45 day lock @
“In Underwriting”
30 day lock @ “CTC”
|
2 PM |
0.125-5 business days
(30 days max extension) |
|
MEGA FOREIGN NATIONAL
(FN)
|
x |
30 day lock @ “In
Underwriting” |
5 PM |
0.500- 7 calendar days
(7 days max extension) |
|
DIAMOND JUMBO (DJ)
|
45 or 60 days
@
“Registered”
|
30 day lock @
“Approved” |
4 PM |
0.125- 7 calendar days
(60 days max extension)
|
|
SILVER JUMBO (SJ)
|
45 or 60 days
@
“Registered”
|
30 day lock @
“Approved” |
4 PM |
0.150- 7 calendar days
(90 day max lock periodincluding original loc
|
|
HELOC
|
x |
Locked by MCF @ time
of docs |
x |
x |
|
DSCR+ 1
|
Purchase45 days @
“Registered” |
Refi- 45 day lock @ “In
Underwriting”
30 day lock @
“Approved”
|
2 PM
|
0.125- 5 business days
(60 days max extension)
|
|
MVP2
|
x |
15 day lock @ “CTC” |
5 PM |
x |
1 PLATINUM JUMBO/PLATINUM JUMBO EXPRESS/DSCR+ WORST-CASE PRICING POLICY:
• Worst-case pricing applies when:
o The rate lock has expired
o The loan has been cancelled/denied for sixty (60) days or less
o The loan product has changed
• NOTE: Worst-case pricing does not reset the lock period and standard extension fees will be assessed (from the lock expiration date) for the length of the extension needed to close.
• Worst-case pricing applies when:
o The rate lock has expired
o The loan has been cancelled/denied for sixty (60) days or less
o The loan product has changed
• NOTE: Worst-case pricing does not reset the lock period and standard extension fees will be assessed (from the lock expiration date) for the length of the extension needed to close.
