Why Shop Here: Certified Network Lenders
CNLs conform to the following rules and principles:
CNLs Transmit Their Prices and Underwriting Data to the Professor’s Network Electronically: Direct transmission means that loan officers have no discretion over prices, which eliminates "low=balling" and other games that loan officers sometimes play, at the borrower's expense. It also allows the professor to a) sort and compare the terms offered by different lenders, on a timely basis, for the benefit of borrowers; b) provide potential borrowers with the capacity to monitor their lender’s prices until their loan is locked (see below); and c) maintain a day-to-day historical record of market prices.
CNLs Provide a Best Price Guarantee: The prices posted here by each CNL are as low or lower than those offered by that CNL directly to borrowers through any other channel.
CNLs Disclose Complete Price Data: This includes interest rate, points, origination fees, and all fixed-dollar fees. Complete pricing assures that the price comparisons disclosed by the professor to users are valid.
CNLs Disclose Complete Information About Adjustable Rate Mortgages (ARMs): On each ARM that they offer, CNLs must provide the rate index, current index value, margin, rate adjustment caps and maximum and minimum rates. This allows the professor and users to assess the risk of future rate and payment increases using the professor’s built-in decision support.
CNLs Accept the Mortgage Professor as the Borrower's Ombudsman. They understand that in the unlikely event that something goes wrong, the professor or his agent will represent the borrower in getting the problem fixed. To facilitate this process, each CNL designates a Single Point of Contact.
Lock Requirements: CNLs may charge borrowers a fee to process their loans, with the charge credited back to the borrower at closing. The lender can also collect an appraisal fee to cover the appraisal cost. None of this fee goes to the lender, and it is not refundable.
CNLs Upon Locking a Loan Must Provide a Lock Confirmation Statement That Includes the Following:
- Product Type
- ARM detail(margin, index value, adjustment caps, max/min rate)
- Loan amount
- Interest rate
- Other lender fees
- Mortgage insurance premium - upfront or monthly
- Lock expiration date
CNLs That Do Not Lock Immediately Must Adhere to the “Twin Brother Rule”: : That rule states that the price locked will be the price the lender would quote on the same day on the identical transaction to the borrower’s twin requesting a price quote. This rule implies that if the market price decreases before the price quoted to the borrower can be locked, the CNL will lock the lower price. If the market price increases before the price quoted to the borrower can be locked, the CNL will not lock until explicitly authorized to do so by the borrower.
CNLs That Over-ride a Price Lock Because a Property Appraisal Alters the Pricing Must Play it Both Ways: If the appraised value is higher by enough to lower the price, the borrower receives the benefit of it.
CNLs That Fail to Close Within the Lock Period Will Extend the Period at No Cost to the Borrower: If the borrower is primarily responsible for the failure to fund, the CNL may charge a fee for a lock extension, but must post that fee. If the CNL and borrower disagree on who was responsible for the failure to fund, the CNL agrees to accept the judgment of the professor.
CNLs Accept Certified Third Party Service Providers Listed on the Site That Have Been Selected by Borrowers: If a borrower can obtain a better price from a firm listed by the professor, the CNL will select that firm unless it has declared in advance that it will not do business with that firm, in which case borrowers will be informed of that.
CNLs Will Not Give Loan Officers Working With Clients on the Professor’s Network Discretion to Adjust Price, Including Lock Fees: The professor will not permit the practice of allowing loan officers to charge an “overage” in situations where they can get away with it; the network is not a bazaar. CNLs must compete with their posted prices.