Section 15.151.945. Interest rate lock-in agreements.

	(a)  The Corporation will, in its discretion, offer interest rate lock-in agreements to approved mortgage sellers. The Corporation will issue an interest rate lock-in agreement to a seller upon its approval of the seller's request on behalf of a borrower. The request must include an agreement by the seller to pay a fee of $250 to the Corporation if the seller fails to submit an application for a loan commitment on behalf of the borrower during the term of the interest rate lock-in. The interest rate lock-in request form shall include the borrower's name and social security number.  
	(b)  An interest rate lock-in agreement will have a term of 30 days. The Corporation may not extend the term of an interest rate lock-in nor may the seller terminate the lock-in prior to its expiration. No borrower may have more than one interest rate lock-in agreement in effect at any time. A borrower may obtain a new interest rate lock-in agreement upon the expiration of a prior lock-in agreement only if all outstanding fees applicable to the borrower's expired lock-in are paid to the lender.  
	(c)  The interest rate lock-in agreement shall establish the date on which the interest rate lock-in application is received by the Corporation. If the seller submits an application for a loan commitment during the term of the lock-in which is approved for purchase by the Corporation, the Corporation will purchase the borrower's loan at the interest rate effective for the applicable loan program on the date set forth in the lock-in agreement, less any Corporation approved rate reductions applicable to the borrower's loan.  

Authorities

18.56.088;18.56.090;18.56.098

Notes

Authority

AS 18.56.088 AS 18.56.090 AS 18.56.098

History

Eff. 9/16/98, Register 148; am 5/3/2001, Register 159