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Loan Reservation Lock Policies Q&A

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

    • The reservation/lock period is 90 days from the date of reservation.  Compensation bonus is paid for those delivered/purchased within 75 days of reservation.

 

  • Is the expiration date the date for which the loan must close?

    • No, the expiration date is the date the loan must be delivered and purchased by.

 

  • 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 lock 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 will not purchase the loan if not delivered/purchased within 150 days.                                                                                         (90 day reservation plus 2 extensions = 150 days).

 

  • Can the extension fee be paid by the borrower?

    • No, the extension fee may not be paid by the borrower.  In some cases, with prior approval from CHFA,                               the seller may be charged the extension fee if the seller is the cause of the delay.

 

  • How does the 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 are 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?

    • ‚ÄčPlease 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.      If it has been less than 30 days since the loan was canceled, you would be subject to worst case, current market or original terms.

 

  • 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 would 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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