The following changes will be made to DocuTech’s New Jersey lock-in agreement:
1. A new Clause E will be added to the “I Do Want an Interest Rate Lock-In at This Time,” which will disclose the commitment fee that will be locked-in (if any).
2. New Clauses C and D will be added to Subsection III, of the “Important Terms and Conditions of the Agreement” section (concerning any refunding of the lock-in fee) and Clause B of the same Subsection will be modified, as follows:
“My Interest Rate Lock-In Fee will be refunded to me only if:
b. I rescind this agreement in accordance to Clause VII of the “Important Terms and Conditions of the Agreement” section of this agreement.
c. I withdraw the application or reject or terminate any commitment, after the loan does not close before the expiration date of either this Lock-In Agreement or any commitment issued consistent therewith, through no ‘substantial fault of the borrower.’
d. I elect to extend this Lock-In Agreement pursuant to N.J. Admin Code tit. 3, §1-16.6 and I elect to close the loan above the lock-in rate, but no higher than that which would provide a current yield but no gross profit or ‘spread’ to the lender.”
3. Additional language will be added to the last sentence of Subsection VI of the “Important Terms and Conditions of the Agreement” section, which shall now state the following:
“(Lender name) will make a good faith effort to process the mortgage loan application and stands ready to fulfill the terms of its commitment before the expiration date of the Lock-In Agreement and any extension thereof.”
4. A new Subsection VII will be added the “Important Terms and Conditions of the Agreement” section, as follows:
“VII. If this agreement is received by us, the Lender, by mail or through a broker, it must be signed by us before it becomes effective. You may rescind the lock-in agreement until you receive a copy of this agreement that is signed by us, by providing us with written notification of such rescission. Mailed notification of rescission shall be effective upon mailing. If you elect to so rescind, we shall promptly refund any lock-in fee paid.”
5. The citations at the end of the document will be reformatted to conform with Blue Book standards (N.J. Admin. Code tit. 3, §§1-16.4 & 1-16.6).
6. A lender’s signature line will be added at the end of the document.
These changes will take effect on December 2, 2011.
November 30, 2011