Lenders Charging Fees On Rate Locks?

As the refinancing boom gathers steam selected residential funders are beginning to charge "rate lock" fees to both consumers and loan brokers, according to industry participants. One mortgage executive, requesting anonymity, said his current servicer, Chase of Iselin, N.J., wanted to charge him 50 basis points to lock in a low rate on his refinancing. He passed on the offer. A call to Chase's 800-number by National Mortgage News resulted in a ten minute wait, and the representative on the other end of the line would not quote any loan information without the caller filling out a credit report. At least three top ten lenders contacted by this newspaper -- Bank of America, Wachovia, and Wells Fargo -- said they do not currently charge lock-in fees for retail applicants. Marc Savitt, current president of the National Association of Mortgage Brokers, said he has heard stories about wholesalers charging brokers a fee to lock in but has not seen anything in print. (For the full story see the Monday, January 19 edition of NMN.)