LOCK FROM SECONDARY MARKETING TO MATCH PROGRAM CODE, INVESTOR CODE, INTEREST RATE,

[Catacam]

Anyone know what this means??

LOCK FROM SECONDARY MARKETING TO MATCH PROGRAM CODE, INVESTOR CODE, INTEREST RATE, DISCOUNT POINTS, FICO SCORE, LENDER CREDIT AND LOAN AMOUNT PER UNDERWRITER'S APPROVAL.

Its part of my conditions...

[webhopper]

it looks like they are looking for someone to do your mortgage insurance. and possibly to buy the loan...  are you using a mortgage broker?

[schlue]

I work for Secondary Marketing at a major lender. When was the rate locked? What program are you going with (conventional, fha, va). What does the LO say about this? Are you with a broker or bank?

[Catacam]

The rate was locked two weeks ago, and expires on May 12, and it is FHA. My LO says that this is standard verbage in all conditions. I am going to list the others here too. And I am going through a broker.

Resp Clear   Condition

Prior to Docs
P	U	0	ESTIMATED HUD-1 ON SUBJECT PROPERTY
P	F	0	LOCK FROM SECONDARY MARKETING TO MATCH PROGRAM CODE, INVESTOR CODE, INTEREST RATE, DISCOUNT POINTS, FICO SCORE, LENDER CREDIT AND LOAN AMOUNT PER UNDERWRITER'S APPROVAL.
P	U	0	EVIDENCE OF FLOOD INSURANCE ANNUAL PREMIUM (WHEN APPLICABLE)
P	U	0	SUBJECT PROPERTY ANNUAL TAX ASSESSMENT(S)
P	U	0	SUBJECT PROPERTY ADDRESS SUPPORTED BY USPS, APPRAISAL REPORT, PRELIMINARY TITLE REPORT AND EVIDENCE OF PROPERTY INSURANCE(S)
P	U	0	EVIDENCE OF HAZARD INSURANCE REFLECTING ANNUAL PREMIUM AND LOSS PAYEE OF: FIRST MORTGAGE CORPORATION/IT'S SUCCESSOR AND/OR ASSIGNS, P.O. BOX 391674, SOLON, OH 44139
P	F	0	PROVIDE A FULLY COMPLETED AND EXECUTED BORROWER CLOSING INFORMATION FORM FMC12125L 01/2011.
P	U	0	APPRAISER TO PROVIDE AN "APPRAISAL INDEPENDENCE CERTIFICATION".
P	F	0	PROVIDE CERTIFIED COPY OF GRANT DEED. BORROWER'S VESTING ON GRANT DEED, FHA CONNECTION, NOTE & DEED OF TRUST, VESTING AMENDMENT, ETC. MUST ALL BE THE SAME.
Concurrent with Funding
P	F	0	FULLY EXECUTED FINAL 1003/92900A

Legend: P - Processor, F = Funding, U = Underwriting

[webhopper]

If you are going through a broker, they are actually working with other banks and investors to sell your loan on the secondary market... Without that contract in place, they won't fund the loan...  Mine was through a broker, about two weeks after I closed I got a notice that my loan amount and servicing of my loan was bought by Wells Fargo.. About a month after that, I got a letter that my loan was sold to Freddie Mac but that Wells Fargo would retain servicing.

The bank that is looking to buy your loan is going to be under contract to buy it at a wholesale discounted interest rate, the broker makes his fees up front by charging you for the discount points.

[Catacam]

Thanks Webhopper. So this is pretty common then?

[webhopper]

I would think so, they need to have a gauranteed contract from the investor (a bank like Wells Fargo)  before they go ahead and issue the loan, otherwise they will be stuck with it in their portfolio and it would limit the amount of other deals they could broker...  the Feds require them to have a certain % of deposits to match every loan they have outstanding. As soon as they can get those loans off their books, they can turn around and originate more loans. Thats why the collapse of the secondary market and the collapse of the mortgage insurers was such a big deal and caused such a major crunch in 2008-2009.  It totally changed the lending landscape, making it harder for people like you and me to get loans.