CAPITAL MARKETS MANUAL

Transcription

1 Section 1 INTRODUCTION 1.1 Overview The NewLeaf Wholesale Rate Lock Policy defines the rate lock, extension, and renegotiation policies of NewLeaf Wholesale ( NewLeaf ). NewLeaf offers a variety of lock periods. Lock periods are based on calendar days. Rate protection begins the day of the lock request and ends at 5:00 p.m. PT on the lock expiration date. The loan must fund on or before the lock expiration date. For lock periods that expire on a weekend or NewLeaf-observed holiday, NewLeaf extends the lock expiration date to the next NewLeaf business day. NewLeaf will not lock loans for periods of 15 days or less unless the loans reflect Approved status. Loans that do not fund on or before the lock expiration date must be extended or re-priced as described below. Section 2 PRICING 2.1 Pricing Availability Pricing is available through the NewLeaf Wholesale website at Effective August 3, 2015: For all Conventional or Government Products, the Lock Desk accepts lock requests Monday through Friday from 8 a.m. PT to 6 p.m. PT. For all other products, the Lock Desk accepts lock requests Monday through Friday from 8 a.m. PT to 5:20 p.m. PT. Although the Lock Desk may not be staffed when a lock is requested, NewLeaf delivers lock confirmations within 24 hours when received Monday through Thursday and within 72 hours when received on Friday. Lock Desk holiday hours and Service Level Agreements (SLAs) are dependent on the Market close and are announced via NewLeaf Broker communication in advance of each holiday. Brokers must submit lock information and requests online via the Product and Pricing page of the NewLeaf Wholesale website at NewLeaf offers lock-in protection to its customers for the following time periods: 15 days (loan must reflect Approved: status) 30 days 45 days 60 days 180 days (Available for product codes W101, W109, W201, W207, W301, W307) NewLeaf locks all loans upon receipt of the request unless pertinent information is missing or the request does not comply with standard NewLeaf locking policy and procedures. If a request cannot be accepted, the Lock Desk notifies the Broker, Account Executive, and Loan Coordinator. The discrepancies indicated Last Revision: 9/12/17 v2.2 Page 1 of 8

2 in the notification must be resolved in a timely manner to avoid the loss of price/rate guarantee. If a lock request issue is not resolved, the loan is not locked and is subject to live Market pricing. Lock confirmations are reflected on the Broker pipeline at in real time. The NewLeaf Lock Desk sends out Lock confirmation forms no later than end of business on the day the request is received. Brokers should review lock confirmations to ensure accuracy and notify the Lock Desk if discrepancies exist. Brokers must notify NewLeaf within 24 hours of lock registration to correct a discrepancy. Corrections after 24 hours may affect the price. 2.2 Pricing Changes New Leaf Wholesale may elect to revise pricing based on intra-day Market volatility as follows: Section 3 Lock requests registered in the system prior to a price change are honored and locked according to the rate and price in effect at the time of the request. Lock requests received after a price revision are locked at the new price. FORWARD OR PRE-LOCKS NewLeaf accepts forward locks on all lock periods except 15 days. Loan files must be submitted per the following timelines: day lock: within 5 days of lock start date day lock: within 10 days of lock start date Loans not delivered within the required time frame are subject to cancellation at the discretion of the NewLeaf Wholesale Capital Markets Department. Section 4 RATE LOCK EXTENSIONS ALL EXTENSION REQUESTS MUST BE RECEIVED BY THE NEWLEAF WHOLESALE LOCK DESK NO LATER THAN LOCK DESK CLOSE (4:30 P.M. PT). NewLeaf processes all requests received after Lock Desk Close on the following business day. If a lock expires on the day the after-hours request is submitted, the extension request will not be honored, and the lock will be considered expired. The loan will be available for re-lock/re-pricing under standard NewLeaf policy. A minimum number of days must remain on the lock prior to loan documents being drawn as follows: Purchase and Investment Properties: Minimum two (2) days remaining Refinance except Investment Properties: Minimum five (5) days remaining Loans that do not have lock expirations within the minimum number of days must be extended prior to drawing loan documents. To request a lock extension, Brokers must complete and the Lock Change Form to ratelock@newleafwholesale.com. Brokers may request an extension at any time prior to the lock expiration, according to the guidelines in Sections 4.1 through 4.2 below. Last Revision: 9/12/17 v2.2 Page 2 of 8

3 4.1 Conventional or Government Products Same Market or Better For Conventional or Government Products, if the current Market price (same lock period as the original lock, e.g.; if the original lock was a 30 day lock, the current 30 day lock price must be used for comparison purposes) is the same or better than the original locked price: NewLeaf may extend a loan one time up to seven calendar days at no cost. Only the first extension is eligible for a free extension. The free extension must be requested when there are seven calendar days or less remaining on the existing lock. Note: Free extensions are not permitted on 15 day locks. A free seven calendar day extension counts as the first extension. If more time is needed, a second extension may be requested at a cost of 2.0 bps per calendar day for a maximum of 23 additional calendar days. The loan may be extended a maximum of two times, and the total aggregate days beyond the original expiration date must not exceed the lesser of 30 calendar days or the initial lock period. If a loan must be extended more than 30 calendar days, the per-calendar-day cost increases and the Broker must contact the NewLeaf Wholesale Lock Desk for a quote Worse Market For Conventional or Government Products, if the current Market price (same lock period as the original lock, e.g.; if the original lock was a 30 day lock, the current 30 day lock price must be used for comparison purposes) is worse than the original locked price: The first extension may be requested at a cost of 1.5 bps per calendar day. A second extension may be requested at a cost of 2.0 bps per calendar day. The loan may be extended a maximum of two times, and the total aggregate days beyond the original expiration date must not exceed the lesser of 30 calendar days or the initial lock period. If more time is needed, Brokers must contact the NewLeaf Wholesale Lock Desk, who handles further extensions on a case-by-case basis. 4.2 Jumbo or Government Expanded Products For Jumbo or Government Expanded Products: The loan may be extended a maximum of two times in increments of 7, 15 or 30 calendar days at the cost noted below. o 7 Days: 0.15% points o 15 Days: 0.30% points o 30 Days: 0.60% points The total aggregate days beyond the original expiration date must not exceed the lesser of 30 calendar days or the initial lock period. Last Revision: 9/12/17 v2.2 Page 3 of 8

4 If more time is needed, Brokers must contact the NewLeaf Lock Desk, who handles further extensions on a case-by-case basis. Extensions are not available if the rate lock has expired. Re-locks/re-pricing is required after the loan expiration date and is based on the standard NewLeaf re-lock policy described in Section 5 below. Section 5 RE-LOCKS A re-lock is defined as a lock that satisfies EITHER of the following conditions: Expires prior to a request for lock extension Remains cancelled/adverse actioned/withdrawn for more than one calendar day (i.e. lock is cancelled on 3/31/16 and is still cancelled on 4/1/16) To request a re-lock, Brokers must complete and a Lock Change Form to ratelock@newleafwholesale.com. If the loan needs to be re-locked more than once, Brokers may obtain a price by contacting the NewLeaf Loan Account Executive. Pricing is determined on a case-by-case basis. All lock periods are available. Example: If the original lock period is 30 days, a 15 day re-lock may be requested. The NewLeaf Lock Desk will process re-lock requests based on product type as indicated in Sections 5.1 through 5.4 below. 5.1 Conventional or Government Product TO Conventional or Government Product The loan will be re-locked at the worse of (a) the original locked price minus 0.25% points or (b) the current Market price minus 0.25% points. If the loan has been expired for more than 30 calendar days, the loan may be re-locked at the current Market price. 5.2 Conventional or Government Product TO Jumbo or Government Expanded Product The loan will be re-locked at the worse of (a) the original locked price minus 0.25% points or (b) the current Market price minus 0.25% points. If the loan has been expired for more than 30 calendar days, the loan may be re-locked at the current Market price. 5.3 Jumbo or Government Expanded Product TO Jumbo or Government Expanded Product If changing investor, the loan will be re-locked at the current Market price minus 0.375% points. If staying with the same investor, the loan will be re-locked per the investor-specific policy. Brokers should contact the NewLeaf Loan Account Executive for specifics. If the loan has been expired for more than 60 calendar days, the loan may be re-locked at the current Market price. Last Revision: 9/12/17 v2.2 Page 4 of 8

5 5.4 Jumbo or Government Expanded Product TO Conventional or Government Product Section 6 The loan will be re-locked at the current Market price minus 0.375% points. If the loan has been expired for more than 30 calendar days, the loan may be re-locked at the current Market price. PROGRAM CHANGES A program change is defined as a lock that satisfies ALL of the following conditions: Has not expired If cancelled/adverse actioned/withdrawn, the change to investor or program is submitted to the NewLeaf Lock Desk same day To request a program change, Brokers must complete and a Lock Change Form to ratelock@newleafwholesale.com. NewLeaf will process program changes based on product type as indicated in Sections 6.1 through 6.4 below. 6.1 Conventional or Government Product TO Conventional or Government Product The loan will be re-priced to the original lock rate sheet. No fee will be assessed. 6.2 Conventional or Government Product TO Jumbo or Government Expanded Product The loan will be re-priced at the worse of (a) the original locked price or (b) the current Market price minus 0.25% points. 6.3 Jumbo or Government Expanded Product TO Jumbo or Government Expanded Product If changing investor, the loan will be re-priced at the current Market price minus 0.25% points. If staying with the same investor, the loan will be re-priced per the investor-specific policy. Brokers should contact the NewLeaf Loan Account Executive for specifics. 6.4 Jumbo or Government Expanded Product TO Conventional or Government Product The loan will be re-priced at the current Market price minus 0.25% points. Section 7 RENEGOTIATIONS ALL RENEGOTIATION REQUESTS MUST BE RECEIVED BY THE LOCK DESK NO LATER THAN 2:00 P.M. PT. IN ADDITION, IF THE LOAN QUALIFIES FOR A RENEGOTIATION, THE ACCEPTANCE OF THE RENEGOTIATED PRICE MUST BE CONFIRMED PRIOR TO THE LOCK DESK CLOSE (4:30 P.M. PT). If the renegotiated price is not accepted and confirmed in writing by Lock Desk close, the Broker will Last Revision: 9/12/17 v2.2 Page 5 of 8

6 be notified by the Lock Desk, and the loan will remain locked at the original interest rate and price. The Broker may submit a new renegotiation request on the following business day. NewLeaf will qualify and re-price the request as of the new request submission date. To request a Rate Lock Renegotiation, Brokers must complete and the Lock Change Form to ratelock@newleafwholesale.com. In the event the Market has significantly improved since the date of the lock, each loan is eligible for renegotiation subject to the following guidelines based on product type as indicated in Sections 7.1 and 7.2 below. 7.1 Conventional or Government Products Eligible lock terms: 60 days The lock is active and unexpired. The loan is approved and cleared for docs. The Market has improved at least 100 bps in price since lock. The renegotiated pricing terms must benefit the Borrower. Price is renegotiated at the current Market price minus points. The current Market price used will be based on the original lock period. Example: If the original lock was a 30 day lock, then the current 30 day lock price must be used for calculation purposes. The renegotiated rate and price expires on the earlier of 15 calendar days from renegotiation or the original expiration date. No free extensions are allowed on locks that have been renegotiated. 7.2 Conventional or Government Extended Rate Lock Products Eligible lock term: 180 days The lock is active and unexpired. The loan must be within 30 days of the scheduled closing date or the original lock expiration date. The renegotiated pricing terms must benefit the Borrower. Price is renegotiated at the current Market 60 day lock price. Example: If the original lock was a 180 day lock, then the current 60 day lock price must be used for calculation purposes. The renegotiated rate and price expires on the earlier of 30 calendar days from renegotiation or the original expiration date. Extensions will not be allowed. No exceptions. 7.3 Jumbo or Government Expanded Products The renegotiation policy on Jumbo or Government Expanded Products is investor-and product-specific. Brokers must contact their NewLeaf Wholesale Account Executive for specifics. Last Revision: 9/12/17 v2.2 Page 6 of 8

7 Section 8 CHANGE OF PROPERTY Change of property is considered a new loan and is subject to current Market pricing. Section 9 CHANGE OF BORROWER Change of Borrowers is acceptable as long as one of the original Borrowers remains the same. If all of the original Borrowers change, the loan is considered a new loan and is subject to current Market pricing. Section 10 RATE CHANGE REQUESTS NewLeaf permits rate increases/decreases on locked loans and prices the changes based on the rate sheet the loan was locked under as long as the loan program remains the same. To request a rate change, Brokers must complete and the Lock Change Form to ratelock@newleafwholesale.com. Last Revision: 9/12/17 v2.2 Page 7 of 8

8 APPENDIX A: LOCK CHANGE FORM Last Revision: 9/12/17 v2.2 Page 8 of 8