Or. Admin. R. 441-865-0060(1)(c) & 441-870-0030(2) require borrowers to be given either a notice stating that their interest rate will float or an agreement locking in the interest rate of the loan. The Oregon Division of Finance and Corporate Securities has published a sample rate lock-in agreement on their website (http://www.cbs.state.or.us/external/dfcs/forms.html#mortgage; Interest Rate Lock/Float Agreement), of which Cx4297 is a duplicate.
However, the language of this sample form is clearly geared towards use by mortgage brokers, with references to the fact that the broker does not guarantee the lock-in agreement and makes no warranties concerning the lender’s ability to deliver such a lock.
In order to make the document more compatible for use by mortgage lenders, a modified version of the document will print if a client is acting as a lender in a loan transaction (if they are acting as a broker, the version which duplicates the sample agreement will be used). The modified version is different in the following regards:
1. Section Two: The third through sixth sentences, which state the “no guaranty” and “no warranty” language referenced above, are removed.
2. Section Three: The phrase “the lender” in the fifth sentence is replaced with a field disclosing the name of the lender.
3. Footnote: The footnote identifying the sample document is removed, since the “lender version” of Cx4297 is not a verbatim duplicate of the sample document.
The broker name will be used throughout the form if a client is acting as a broker and the broker name is entered. The lender name will print by default if a client is acting as a lender or no broker name is entered.
These changes will take effect August 29, 2012. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
August 22, 2012