Change to Pricing Structure for all Conforming Conventional loans

January 24, 2012Company News

As a result of the Temporary Payroll Tax Cut Continuation Act of 2011 passed by Congress and signed into law, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to increase loan guarantee fees.

Carrington Mortgage Services will implement a change to our pricing structure for all Conforming Conventional (including High Balance products) loans as follows:

  • Any Fannie Mae or Freddie Mac product loans that are locked prior to January 19, 2012 and need to extend the lock beyond February 14, 2012 to fund will be subject to a 50 basis point price adjustment. This is in addition to any regular extension cost.
  • This applies to all loans with a new expiration date that is on or after February 14, 2012 or to which the lock extension is added on or after February 14, 2012.  This only applies to loans locked prior to February 14, 2012 and that are being extended past that date.  Locks on or after February 14, 2012 will have regular extension costs applied.
  • Includes all relocks and all other extension scenarios
  • All other extension costs for loans locked on or after January 19, 2012 or that close and disburse prior to February 14, 2012 will be subject to the current extension fees as listed on the daily rate sheet

Carrington Mortgage Services will monitor the pipeline and reserves the right to assess the correct extension fees where applicable.

If you have any questions please contact your Account Executive.

Thank you for your continued business.

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