LOCK POLICY

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Lock and Lock Extension Policy

 Phone: (888) 585-6264

Email: TPOlockdesk@phinanceus.com

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Loans can be locked or extended in the system up until 3pm PT. Lock Desk phone support is available between the hours of 7:00am to 4:00pm Pacific Time.

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Lock Period

A lock period begins the day after the loan is locked.  Example: A 15-day lock is taken on June 1st and will expire on June 16th.

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Lock Expiration

PhinanceUS™ lock expiration policy is that a lock will always expire on a business day. A lock expiration that would naturally fall on a weekend or holiday will be rolled to the next business day. Locks expire at 3pm PT.

Example: If a 30-day lock would put the expiration date on a Saturday or Sunday, the lock expiration date will automatically roll to the following business day.

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Relock Policy

An inactive lock is an expired lock and includes loans that were locked and later canceled or denied.

Loans with expired locks will be considered for relocks at the worst-case pricing and are subject to a relock fee.

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All relock requests within 30 days after the initial lock expiration date will be relocked at the worst-case pricing and will be charged a relock fee as described below.

Worse case pricing will compare the base pricing net of all loan level adjustments from the initial lock to the pricing in effect at the time of the relock request. See definition below for additional information

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Relock Fees

• 15 day relock: Worse case pricing and a .125 relock fee.

• 30 day relock: Worse case pricing and a .25 relock fee.

• 45 day relock: Worse case pricing and a .375 relock fee.

• 60 day relock: Worse case pricing and a .50 relock fee.

Note: For loans that were initially locked for 15 days and require a relock, the loan may be relocked for 15 additional days at a charge of .25, for 30 additional days for .375, for 45 additional days for .50 and for 60 additional days for .625.

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Relock Requirements and Restrictions

Relock fees are cumulative. If a loan has been relocked once and requires another relock, an additional relock fee will apply.

Requests for relocks will only be considered for loans that are approved by underwriting.

If a loan has been relocked once and requires a second relock, to qualify for a second relock, the file must be ready for docs and all prior to doc conditions must be signed off.

If price adjustments and/or underwriting guidelines have occurred since the initial lock, the loan will be subject to worse case price adjustments as well as subject to current underwriting guidelines.

Loans may be relocked at the current market pricing when at least 30 days have passed from the current lock expiration date. This will be considered a new lock and is not subject to relock fees and/or requirements. Jumbo loans are not eligible – See Section 3.5.

Relock requests will only be taken by phone. Emailed relock requests are not honored as they are subject to any market movement.

If the rate the loan was initially locked at is not available at the time of relock, the worse case pricing is calculated by comparing the pricing of a new available rate.

Loans that have been relocked are not eligible for a lock extension, unless the loan is in a clear-to-close status. If the loan is not in a clear to close status, the file must be relocked again, subject to worse case pricing and an additional relock fee.

Jumbo/Non-QM/2nd Lien Loans 

Jumbo, Non-QM, and 2nd Lien loans require investor prior approval for underwriting. If the investor has not approved the loan within 30 days of submission for prior approval, the investor will cancel the loan and the lock, if applicable.

Relocks on Jumbo, Non-QM, and 2nd Lien loans are considered case-by-case by Secondary Marketing Management and will be subject to investor approval

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Worse Case Pricing Definition

Worse case pricing will compare the original price including prior extension fees to the current market price for the same term. Any prior lock extension fees and/or branch pricing specials will be reapplied once worse case pricing is determined. The relock fees will be applied once worse case pricing is determined.

Example: Loan was locked for 30 days and lock expires, compare original 30 day price (including any applicable extension fees) to the current market price at the same rate for 30 days. If loan only needs to be relocked for 15 days, Phinance will reduce the lock term to 15 days as long as the net price does not improve based on the shorter lock term.

When it is determined that the current market price is worse case, prior extension fees may be removed and loan can be locked at current market price without the prior extension fee.

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Wholesale Lock Renegotiations

If a customer wants to renegotiate (decrease in rate) the original locked terms of a loan, the following guidelines will apply:

The market rate must have improved significantly.

• The renegotiated price will be 50 basis points worse than the current day price.

• The original lock expiration date will remain in effect.

• Renegotiations are not allowed on files that have already been relocked at worse case pricing.

• Refinance transaction: Renegotiations will be considered when the loan has been approved by underwriting and is ready to go to docs.

• Purchase transaction: There must be at least 10 days remaining on the lock to be considered for a lock renegotiation.