The NY Interest Rate Lock Commitment (Cx3588) is required under N.Y. Comp. Codes R. & Regs. tit. 3, §38.4(a) to be given in connection with a mortgage loan in which either the proceeds of the loan are used to purchase a dwelling or commitment fees or points are paid to the lender. Among other things, this Commitment fixes the interest rate at which the loan will close.
Similar to Cx3588, the NY Prevailing Interest Rate Commitment (Cx3710), which is required under Ibid. § 38.5, must be given before a commitment fee, points, or other discounts are accepted. Cx3710 must disclose many of the same items as Cx3588, however, Cx3710 does not specifically fix the interest rate of the loan. Rather, it commits the lender to set the interest rate after commitment, but prior to closing, based upon certain standards, such as an index and margin.
We will be changing our configurations for these documents so that Cx3588 will print when the field “Rate Lock Initiated?” equals “Yes” and Cx3710 will print if the field equals “No.”
A global mapping will be added to this field to set it automatically to “No” (and cause Cx3710 to print) if all of the following apply:
- The “Rate Lock Initiated?” field is missing or empty;
- The “Lock date” field is missing or empty; and
- The “Lock Expiration Date” field is missing or empty.
This change will take effect on June 6, 2014. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
May 30, 2014