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How to Price a Loan. Useful Pricing Information Rate guide pricing assumes 1.000 origination is being collected. If the borrower is not being charged.

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Presentation on theme: "How to Price a Loan. Useful Pricing Information Rate guide pricing assumes 1.000 origination is being collected. If the borrower is not being charged."— Presentation transcript:

1 How to Price a Loan

2 Useful Pricing Information Rate guide pricing assumes origination is being collected. If the borrower is not being charged then take away from the rate guide pricing. Loan size adjusters are listed on page 1 and 2 of the rate guides and apply to all products except FHA. FHA products do not receive loan size adjusters. 60 day pricing is worse than 45 day pricing on all products that allow 60 day pricing. Extended lock options are located on page 2 of the rate guides and also apply to most Government 30 programs. Lock Desk Hours: Weekdays 8:30 am – 8:30 pm EST Weekends 8:30 am Friday – 8:00 pm EST Sunday

3 All pricing assumes origination is being collected. Ex. FHA % 30 days not collecting any points (0 & 0) and a FICO score of Rate Guide Price No Origination FHA Improvement Final Price (-.625 shortage)

4 EXTENSIONS The extension policy is located at the bottom of page 1 of the daily rate guides. Extension requests should be sent to Rate Lock from PCL and cannot expire on a weekend or holiday. In the extension request include the specific number of days and if it will be at a cost to the borrower. The cost to extend the first time is.02 per day and a second extension is.03 per day. The combined total cannot exceed 30 days. A 3 rd extension request at.03 will be granted if a firm close date is confirmed by the closer. Rate Extension Policy First Extension will be 0.02 per day. Second Extension will be 0.03 per day. You must extend to a normal business day, these cannot expire on a weekend or holiday Maximum number of extensions is limited to 2 Maximum number of days for combined extensions is 30 days No Extensions permitted for Non-Conforming Programs All Lock Extension Requests should be sent to from PCL 3rd Extension Requests or requests exceeding 30 days must have a firm close date in place first

5 Page 2 of the rate guide has Conforming Fixed products (<=$417,000) Extended Lock Option

6 Page 3 contains High Balance and Non- Conforming Fixed and ARM products

7 Page 4 contains the Conforming and High Balance pricing adjustments. These apply to the programs listed on page 2 and page 3 (excluding Non-Conforming) Pricing Example: C30, 3.750%, $200,000, SFR, purchase, 720 FICO, 80/90, 30 day lock, points 0 & Rate Guide Price No Origination FICO CLTV Final Price ( shortage )

8 Page 4 contains HomePath pricing and pricing adjustments. There cannot be a shortage with these programs. Pricing Example: 30 YR, 4.875%, 795 FICO, Primary Purchase, $120,000, SFR, 97% LTV, 30 day lock, points 1 & Rate Guide Price Discount Collected HomePath Adjuster High LTV FICO Final Price No Pricing Adjustment Cap with HomePath Programs

9 Page 5 contains the Open Access program and adjusters. There cannot be a shortage with this product. Pricing Example: 30YR, 4.500%, 787 FICO, Primary Refinance, $260,000, SFR, 100/105, 30 day lock, points.750 & Rate Guide Price Origination CLTV High LTV FICO Pricing Adjustment Cap Final Price

10 Page 6 contains the DU Refi Plus Fixed programs (<105% LTV & LTV) and pricing adjusters. There cannot be a shortage with these programs. Pricing Example: 20 YR, 4.125%, FICO 745, Primary Refinance, $150,000, condo, 106 LTV, 45 day lock, points 1 & Rate Guide Price Condo High LTV Discount Collected Final Price Pricing Example # 2: 30 YR, 4.500%, FICO 708, Primary Refinance, $223,000, SFR, 100 LTV, 30 day lock, points.875 & Rate Guide Price (<105% LTV) Origination Collected High LTV FICO Final Price

11 Rate Lock Phone: (757) ext. 3658


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