Hello E,

Every lender has different guidelines about when and how rates are locked. With the numerous changes taking place in the mortgage industry now, banks are scrambling to adapt their guidelines to cover the increased risk in the marketplace. Many direct lenders no longer allow locking of loans until packages are submitted to opening or underwriting, and some won't lock until after a clear-to-close has been given.

Here's the thing- what he should have done was lock the loan at the time and then pay for an extension (generally a .25 point cost) and notified you of what was happening. Most of the time (not all) when this happens it's not because of lock expiration issues, it's because the lender either can't get the rate quoted or a shorter lock time was paying them more on the back end.

If you signed RESPAs, they serve no purpose beyond recording for the lender that you understand the terms of the mortgage. It does not serve as a contract. Until you sign at closing the loan is not binding, and even then there's the right of review period.

Your L.O. should have notified you that he wasn't locking your loan at the time. Unfortunately there's not much more you can do about it. Try speaking with a supervisor and explaining the situation. Let them know in no uncertain terms that you plan on contacting the attorney general and the BBB if they are unwilling to deliver what they promised. There's no legal repercussions to what happened, but it may be enough to light a fire under them. Good luck!

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com