To: VHDA Approved Lenders
From: Sandy Redd, Business Partner Product Manager VHDA
Date: March 19, 2012
RE: CHANGES TO SINGLE FAMILY RATE LOCK POLICIES
As you are all aware, VHDA has been seeking additional funding options outside of the traditional tax exempt bond market in order to continue providing affordable financing options for Virginia’s first-time homebuyers.
With the option of delivering loans to other investors comes the need to revise VHDA’s rate lock policy to be more in line with a traditional secondary market delivery.
• Effective for all loans reserved on or after May 1, 2012, VHDA will NO longer offer a 60-day extension to the standard 60-day rate lock.
• We will also discontinue any commitment extensions on the same reservations, so you will need to work within a 60-day lock to receive loan commitment and then a 90 or 120-day commitment, depending on construction type.
• A change in property address will require a brand new rate lock at current market, better or worse.
• A change in loan program from government to conventional, or vice versa, will require a new rate lock as well, better or worse.
• If a 60-day lock expires prior to commitment, the loan must be re-locked and the borrower cannot receive a lower rate unless the lock has been expired for a minimum of 30 days.
• The $120 reservation fee must be paid for the canceled or expired lock for all situations noted above.
OVERNIGHT PRICE PROTECTION
• At this time, VHDA will continue to offer standard overnight price protection, Tuesday through Friday. However, effective May 1, 2012, we will begin turning off the SF reservations system on vhda.org on Fridays at 9 p.m. and reactivating with daily rates by 10 a.m. on Monday.
• The reservations system will be turned off on the holidays listed below. The system will be available on the holidays that VHDA is open, ie: Columbus Day. Reservations will be available on the Friday after Thanksgiving, when VHDA is closed, but which is not a standard federal holiday.
Standard Federal Holidays:
Monday, January 2 New Year’s Day
Monday, January 16 Birthday of Martin Luther King, Jr.
Monday, February 20 Washington’s Birthday
Monday, May 28 Memorial Day
Wednesday, July 4 Independence Day
Monday, September 3 Labor Day
Monday, October 8 Columbus Day (VHDA open)
Monday, November 12 Veteran’s Day
Thursday, November 22 Thanksgiving Day
Tuesday, December 25 Christmas Day
Our goal is to transition to more standard industry procedures and to continue offering products with special benefits to first-time homebuyers. We appreciate your support through this change.
If you have any questions related to these changes, please contact Sandy Redd at 804-343-820 or firstname.lastname@example.org.