“After closing, we`ll let you know. No later than three business days after the interest rate freeze, the creditor must submit to the consumer a revised version of the forecast statement of the credit covered by Section 1026.19 (e) (1) (i). Section 1026.19 (e) (4) (4) (ii) prohibits a creditor from providing a revised version of the section 1026.19 credit estimate (1) (i) on or after the date the lender provides the closing communication, section 1026.19 (f),1).i If the interest rate is frozen on or after the date on which the lender provides the closing communication and the closing communication is thus inaccurate, the creditor must make available to the consumer a corrected closing communication, which is reflected on the date or at the end, the possible conditions amended in accordance with the date on which it was concluded. 1026.19 (f) (2). If the interest rate freeze makes the closing communication imprecise before the full conversion, the creditor ensures that the consumer receives, no later than three business days before closing, a corrected closing notification, as provided for in this paragraph.” One of the drawbacks for the borrower is the blocking of mortgage interest which would prevent them from benefiting from lower interest rates that could occur during the prohibition period. Conversely, the lender cannot take advantage of rate increases. The GFPB also explained its review process that it does not automatically require a revised CD by stating in the preamble: “In particular, the information in the credit estimate is as follows. 1026.37 (a) (13) on the terms of the interest rate freeze agreement, are not disclosed in the final communication referred to above. 1026.38, therefore, a subsequent interest rate freeze agreement would not alone require a corrected closing communication unless the costs and conditions become imprecise. Subsection 1026.19 (e) (3) (iv) indicates when a revised credit estimate can be used to reset tolerances. The subsection contains five paragraphs describing five categories of circumstances in which a revised credit estimate can be issued and used to reset tolerance for good faith purposes.
Four of these circumstances are permissive, which means that a revised credit estimate may be issued, but it is not necessary. In other words, if the credit union decides that the new issuance of the credit estimate is not worth the cost, it may choose not to do so, although it cannot reset the tolerances because of the event. Mortgage commitment, a written agreement between a mortgage lender and a borrower for a mortgage that, subject to the conditions set out in it, requires the mortgage lender to make a mortgage at a certain interest rate if such a bond is signed by the borrower and the mortgage lender. The Sweet Spot is the optimal combination of interest rate, duration and cost. Most lenders do not lock in your interest rate for less than 30 days, unless you are willing to close, and often offer the same interest rate for a period of 15 and 45 days.