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2. Policies on Interest Rates and Related Fees
Contents:
- a. Establishment of the Interest Rate
- b. Fees for Lock Ins or Rate Locks
- c. Required Borrower Disclosure
- d. Circumstances Requiring Borrower Requalification
Change Date
Back to top3.A.2.aa. Establishment of the Interest Rate
Under all currently active FHA single family mortgage insurance programs, the interest rate and any discount points are negotiated between the borrower and the lender.
3.A.2.bb. Fees for Lock Ins or Rate Locks
Lenders are permitted to charge a commitment fee to guarantee, in writing, the interest rate and discount points for a specific period of time or to limit the extent to which they may change.
The minimum time for lock ins or rate locks is 15 days. The loan may close in less than 15 days at the convenience of the borrower, and the lock in fees may still be earned. Lenders must honor all such commitments.
3.A.2.cc. Required Borrower Disclosure
The lender must provide the borrower with HUD-92900-B
, HUD Interest Rate Disclosure Statement to explain that the loan terms are negotiable.
3.A.2.dd. Circumstances Requiring Borrower Requalification
A borrower must be requalified if there is any increase in either
- discount points, or
- the interest rate.
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