SS Memo 08-01
SELLING GUIDE REVISIONS: CONTACT UNDERWRITING
Date: January 04, 2008
Interest Rate Lock-in
As many AHFC Lenders are aware, we are in the process of converting to a new computer system. To prepare for future automation, a change to our current lock-in and commitment procedures is required.
Effective January 14, 2008, all commitments will require a lock-in prior to submission. In addition, all lock-in requests (Form UND-2) must be faxed and received at AHFC no later than 5:00 p.m. to receive that day’s published rates. Please note that a commitment submission received without a prior lock-in will be locked in by AHFC and will receive that day’s rate. Lenders must begin using the attached revised UND-2 beginning Monday, January 14.
Section 1005.02 is amended as follows:
“Lenders must request a 30-day interest rate lock-in for a borrower prior to submission to AHFC for commitment. The effective date of the Interest Rate Lock-in is the date indicated by the fax machine on the faxed document (Form UND-2) received by AHFC Underwriting [FAX (907) 330-8475].
AHFC will accept lock-ins until 5:00 p.m. on business days, for that day's published rates. If a lock-in request is received on a business day after 5:00 p.m., on a weekend, or AHFC holiday, it will not be processed. An Interest Rate Lock-in Contract is issued for an approved lock-in request. Form UND-2 must be complete in order to be processed; if incomplete, the requested interest rate will not be granted.
To avoid payment of a $250 lock-in fee, a complete submission file that results in a commitment for the borrower must be delivered (or postmarked) to AHFC on or before the expiration of the lock-in. Interest rate lock-ins may not be cancelled.”
Attached is an Update Summary highlighting revisions to AHFC’s online mortgage guides for the second half of 2007 and the changes announced in this memorandum.
UND-2 (01/08) UND-2 .doc UND-2 .pdf