Washington laws concerning rate-locks can be found in Wash. Rev. Code Ann. §§ 19.146.010 and 19.146.030(2)(c) & (3), as well as Wash. Admin. Code §§ 208-620-510(3) & (4), 208-660-006, and 208-660-430(3)(C) & (6) through (8). The Washington Department of Financial Institutions published a model Rate Lock Agreement on their website (http://www.dfi.wa.gov/cs/mortgage_forms.htm), of which Cx2792 is a duplicate.
The basic process for rate locks is that, within three business days following receipt of an application, a mortgage broker, lender, or originator must disclose to the borrower whether the interest rate is locked or floating. If it is locked, then a copy of the Rate Lock Agreement must be provided to the borrower. If it is floating, then a disclosure of this fact must be given – which requirement is fulfilled by providing a properly executed GFE (see Ibid. § 208-620-510[a]). If the rate is locked subsequent to these disclosures, then a Rate Lock Agreement must be provided within three business days of locking in the rate.
Currently, Cx2792 is configured to print in Initial Disclosure packages all the time. We will be adding a configuration for this document so that it will now only print if “Rate Lock Initiated?” equals “Yes.”
This change will take effect on May 8, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
May 1, 2014