ASMC offers several interest rate and discount combinations for each of our loan programs. You will receive a rate sheet
daily that will reflect our most current quotes. These quotes are valid until 8:00 a.m. on the ASMC business day following the date reflected on the rate sheet or if you are notified of a
change due to market movements. If you have any questions regarding our rate sheet, please call us as we invite your questions and comments. Prices reflected on the rate sheet are
all-inclusive. Please note the adjustments for loan size. ASMC'S pricing and lock-in policy revolves around a standard 45-day lock-in period; however, we also offer
additional expirations to meet your individual needs. For example, in addition to our standard lock period, we also offer 10-, 30-, 60-, 90-, 120-, and 180-day expirations.
Quotes for these lock terms vary, and most are found on the rate sheet. However, should your customer need special consideration, please do not hesitate to call us.
AMERICAN SOUTHWEST MORTGAGE CORPORATION
PRICING POLICY STATEMENT
ASMC's general pricing policy revolves around the time frame needed for
closed loan delivery, not closing time frames. Our standard pricing assumes a 45 day lock period; however, should you require other delivery times we will be pleased to accommodate you if
you will indicate to us on the Lock/Loan Registration form when the closed loan will be delivered. Should the expiration date fall on a weekend day or federal holiday, the guaranteed price
expiration will be automatically extended to the next ASMC business day.
By providing you with a deadline in this format, you can close the loan at any time prior to the price guaranty
expiration date as long as the closed loan package is received in our office by the close of business on the day of the expiration.
For lenders that use our loan funding services, the loan must close, fund AND be received back in our office
by the expiration period. Again, if the delivery deadline falls on a weekend or federal holiday, the delivery deadline will be extended to the next ASMC business day.
Because the
mortgage industry deals in forward delivery promises, the price for a particular interest rate will generally be better for shorter lock terms and not quite as good for longer lock terms.
To avoid repricing, you should pick the lock term that you need that will allow you to properly close and deliver the loan to us in a purchasable form. You can find the pricing changes for
the various delivery time frame options on the daily rate sheet.
LOAN REVIEW AND PURCHASE
Upon receipt of the closed loan package, we will review
the closing documents and the "at closing" requirements for accuracy. It is your responsibility to ensure that all loans are closed properly, all requirements met, and all executions on the
loan documents are correct. Should we determine in our review that the loan is deficient in some area, we will notify you by telephone AND by fax or e-mail as to the nature of the deficiency and
the time frame in which you must correct and return the faulty document(s). If the corrected or missing document(s) is/are not received in the time required, we may be forced to reprice the loan
to then-current pricing. All delivery fault time frames are set at the sole discretion of ASMC personnel and generally are directly related to either a delivery deadline we must meet or the
failure of a closer to return a proper collateral package for us to bank. We will attempt to be flexible in the time frame allowed to make a good delivery; however, please be advised that
there may be instances where repricing is unavoidable. In those instances, please refer to the Repricing Policy set out below.
At time of purchase or closing we will fund the loan by
wire net of fees due us, interest, and escrows (if not previously remitted). We will also add back to the wire amount any fees or premiums due to you. A sample Purchase Advice Form is
provided for your review.
REPRICE POLICY
Should repricing become necessary, the new price is defined as the HIGHER OF the original price or the
then-current price based on the ASMC rate sheet in effect on the day the repricing is determined by ASMC personnel to be necessary. If interest rates are higher than at the time of the
original lock, we will reprice the loan using the price associated with only the amount of time you indicate that is necessary to correct the problem, providing that that price is not better than
the original locked price. Thus, you may be able to reprice to a shorter DELIVERY term than originally locked to reduce reprice costs.
LOCKS THAT EXPIRE or REQUIRE EXTENSION
EXPRIATIONS: See reprice policy; however, if a lock has expired and 90 calendar days have passed since most recent lock expiration, the
lock will be treated as a new lock and then-current pricing will be applicable.
EXTENSIONS: See reprice policy; however, certain locks may be extended for a fee based on the amount of
time needed to deliver. If you are unable to deliver the loan within the original lock term, please call us IN ADVANCE. We will create a solution that is the least expensive for you based
on our reprice policy and the delivery circumstances.
CHANGES TO LOAN PARAMETERS
Unless otherwise approved by ASMC in advance, for purchase
transactions, in order to lock a loan your customer must have a full property address available. In the case of a refinance, the applicant must have valid title to the property
that is being refinanced. Assuming the proposed loan transaction meets either of these criteria:
- If a loan has been previously locked and the applicant wishes to change a loan amount or interest rate (7.00 to 8.00) and the lock has not expired AND NO OTHER CHANGES are requested, the
original rate sheet price for the new rate or term will apply regardless of market movements.
- Should the borrower wish to change LOAN TYPES (30 year to 15 year, conv. to FHA, fixed to a.r.m., etc.), then the loan will be repriced under the reprice policy reflected above.
The lock is tied to the BORROWER AND THE PROPERTY. If either change, regardless of reason, the original lock is cancelled and the new transaction will be relocked using new
pricing. The only exception to this rule is in the instance where a co-borrower wishes to be removed from the loan application.
SPECIAL COMMENTS
- All loans submitted for underwriting must have an ASMC loan number assigned through our registration procedure, regardless of lock status.
- When canceling a lock for any reason, you again must notify us by phone. In addition you must provide, within seventy two hours, our secondary marketing department with a copy of
the Adverse Action form you issued to the applicant at the time the loan was withdrawn or denied.
- The loan number assigned belongs to the BORROWER. If the borrower changes properties prior to closing, a new loan number is not required.
- If a loan has not been locked at the time of underwriting, the terms of the lock must be reviewed by the underwriter prior to closing.
- If you are using our loan closing services, the loan must be locked no later than 24 hours prior to loan closing.
