During a rate lock period, the borrower's credit score drops from 740 to 680 due to a new credit inquiry and increased credit utilization. The rate lock agreement contains standard terms. What is the most likely outcome?
Correct Answer
C) The rate lock remains valid if all other conditions are met at closing
Most rate lock agreements honor the locked rate as long as the loan closes within the lock period and the borrower meets the material conditions disclosed at the time of lock. A moderate credit score change alone typically doesn't void the rate lock unless the agreement specifically includes credit score maintenance provisions or the change is deemed material by the lender.
Why This Is the Correct Answer
Most rate lock agreements honor the locked rate as long as the loan closes within the lock period and the borrower meets the material conditions disclosed at the time of lock. A moderate credit score change alone typically doesn't void the rate lock unless the agreement specifically includes credit score maintenance provisions or the change is deemed material by the lender.
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A borrower submits a mortgage application on Monday at 2:00 PM. The lender determines the application is complete on Wednesday at 10:00 AM. What is the latest day the Loan Estimate must be delivered to comply with TRID requirements?
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