Or. Admin. R. 441-865-0060(1)(c) (2012) requires a mortgage banker or mortgage broker to maintain in their files either a written statement from a borrower acknowledging that the interest rate for their loan will float, or a copy of an executed lock agreement, which must contain certain items of information, such as (but not limited to) the lock-in date, lock expiration date, and term of the loan (see Ibid. R. 441-850-0005  for further requirements).
The Oregon Division of Finance and Corporate Securities provides a sample “Interest Rate Lock/Float Agreement” on their website (http://www.cbs.state.or.us/external/dfcs/forms.html#mortgage; Form 440-4828) for these regulations, of which our Cx4297 is a duplicate of.
This document complies with the provisions of Ibid. R. 441-850-0005(21) & 441-865-0060(1)(c). However, Ibid. R. 441-870-0030(2)(a) (2012) holds that a person, in connection with a mortgage loan, is engaging in an illegal practice or conduct if they enter into a lock agreement or advertise the availability of a lock agreement, if either of these does not specify the terms of the lock agreement, including “the costs to the borrower associated with the lock agreement” – which would be a lock-in fee.
The sample “Interest Rate Lock/Float Agreement” provided by the Division does not disclose the lock-in fee. Although our policy is to match official model or sample forms as close as possible, we do modify them when there is a possibility that they are deficient in complying with a state’s laws. For this reason, we will be modifying Cx4297 to include a disclosure of the lock-in fee between the “Lock date” and “Subject Property” parts towards the bottom of the document, to ensure compliance. If no lock-in fee is being charged for the Agreement, the fee will be disclosed as “N/A.”
These changes will take effect on January 9, 2013. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
January 2, 2013