This document is required under Idaho Code Ann. § 26-31-211(9) and Idaho Admin. Code r. 12.01.10.050(4) to be provided to a borrower within three business days (including Saturdays) after a lock-in agreement is executed. The content of this document duplicates the model Confirmation Agreement published by the Idaho Department of Finance on their website (http://finance.idaho.gov/Mortgage/MortgageForms.aspx).
This document discloses, inter alia, the amount of the loan origination fee, discount points, and lock-in fee. Currently we are only disclosing the portion of the loan origination and discount points fees which are paid by the borrower, since Ibid. specifies that the document be a “written confirmation of the term of the lock-in agreement” (with “term” being interpreted as the terms of the agreement). The lock-in fee is different in that it is either imported or set by clients to pull from specific HUD-line fields; therefore we cannot restrict the lock-in fee to include only borrower-paid amounts. Our interpretation of the Code was that, since lock-in agreements are binding between the lender and the borrower exclusively, the “terms of the agreement” should only extend to the amount of consideration being paid by the borrower and not by any other entities not a party to the agreement (e.g. a seller).
However, due to specific feedback provided by the Department on their requirements, we will be modifying the loan origination and discount point fields to disclose the total of all of these amounts, rather than just the borrower-paid portion. The new fields used for these sections are as follows:
Loan Origination Fee: Field 21855 (Total Expense for Line: 801)
Discount Points: Field 21856 (Total Expense for Line: 802)
We also recommend that all clients ensure their lock-in fee field is disclosing the total of all lock-in fee amounts, in order to comply with the feedback from the Department. The field used for the lock-in fee on this document is:
Lock-in Fee: Field 6671 (Lock In Fee)
These changes will take effect on June 3, 2014. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
May 27, 2014