Loan Reservation Lock Policies Q&A

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  • What is the reservation/lock term for CHFA loans?

    • The lock period is 60 days from the date of reservation. If the loan does not close within the 60 day lock period, the lender may charge and retain a one-time extension fee of .25% to the responsible party. This is different than the delivery/purchase date.

 

  • Is the delivery/purchase by date the date for which the loan must close?

    • No, the loan must be delivered/purchased within 90 days of reservation. If the loan is not purchased within 90 days, the lender will be charged (net funded) .25%  for each 30 day extension, up to two.

 

  • How far in advance of the closing date should I reserve my loan?

    • CHFA recommends not reserving a loan until you are within 45 days of the anticipated closing date to allow sufficient time for delivery and purchase.

 

  • Can I extend the expiration date?

    • Yes, the reservation (delivery/purchase by date)  may be extended twice for 30 days at a cost of .25% point each.

 

 

  • What happens if I need another extension after I have already extended twice?

    • CHFA reserves the right to not purchase the loan if not delivered/purchased within 150 days. (90 day reservation plus 2 extensions = 150 days). No lender compensation will be paid for loans purchased after 150 days.

 

  • Can the lock extension fee be paid by the borrower?

    • The responsible party may be charged one extension fee of .25%  for the lender to retain if the loan does not close within 60 days of reservation due to no fault of the lender. Any delivery/purchase by extension fees beyond the 90-day delivery will be netted from the lender’s compensation.​

       

  • How does the delivery/purchase by extension fee get paid?

    • The cost of the extension(s) will be net funded from the lender compensation at the time of loan purchase.

 

  • What happens if my lock expires, and I did not request an extension prior to the expiration date?

    • Once your lock expires, you could be subject to worst case, current market or locked rate.  Extension fees will still be charged.

 

  • What happens if my borrower changes properties?  Can we use the same reservation and interest rate? 

    • No, the reservation/lock is for the borrower and attached to the property.  A new property requires a new reservation/lock based on market at that time.  Please email reschanges@chfa.org so that an administrator may override the system to allow a new lock for the borrower.

 

  • What do I do if I need to cancel a reservation?

    • ​Please email reschanges@chfa.org and state the reason for the cancellation (contract release, borrower does not qualify for program, etc.)

 

  • What happens if I cancel a reservation/lock and then need to re-reserve it? 

    • If more than 30 days has passed since the loan was canceled, you would re-reserve the loan at current market rates.      

 

  • What happens if my borrower is already reserved with another lender?  

    • Depending upon the time elapsed from original reservation, the new lender may use the existing reservation or may need  a new reservation, which could be based on worst case pricing.  Borrower must provide written request to change lender.  

 

  • Who should I contact with reservation questions, concerns, cancellations?

 
 
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