A lock-in agreement is allowed to be executed between a borrower and a licensed mortgage lender under Chapter 11, Title 26 of the District’s Code, in connection with loans secured by a dwelling located in the District of Columbia, under D.C. Mun. Regs. tit. 26-C, §§ 1117.4 through 1117.6 (2013).
If a lock-in agreement is executed, it must contain certain items of information, including disclosures of some of the terms of the loans, the amount of any lock-in fee, the length of the lock-in period, certain statements, and any other terms or conditions of the agreement that the mortgage lender requires.
As a result of these requirements, we provide Cx10455. Pursuant to our annual audit of all state-specific disclosures, we will be editing Cx10455 in the following ways:
1. All sentences except the last one in the first paragraph will be replaced with more comprehensive text, which (inter alia) sets forth the identification of first and second person pronouns used throughout the document.
2. Under the “Terms of the Lock-in Agreement” section, a new “Other Terms:” field will be included, in which clients can enter their own additional terms for each particular loan. If nothing is entered in this field, “N/A” will print.
3. Minor edits will be made in the “Conditions of the Lock-in Agreement” to some of the text for grammatical reasons (e.g. changing the common noun “agreement” to the proper noun “Agreement”).
4. Because both the mortgage lender and the borrower need to execute the agreement, in addition to the lender signature line that already prints on the document, we will be adding a signature recital before such signature, in which the lender (or an authorized agent of the lender) agrees to the terms and considerations in the agreement.
These changes will take effect on July 15, 2013. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
July 10, 2013