What is a Certified Network Lender (CNL)?

Lenders offering loans on the professor’s network are certified as CNLs, which means that they conform to the following rules and principles:
CNLs Transmit Their Prices and Underwriting Data to the Professor’s Network Electronically: This allows the professor to sort and compare the terms offered by different lenders, on a timely basis, for the benefit of borrowers. It also allows the professor to a) maintain an archive of data to support the ombudsman function (see below); b) provide potential borrowers with t he 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 Must 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 Must 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 calculators.
CNLs Upon Locking a Loan Must Provide a Lock Confirmation Statement That Includes the Following:
  1. Product type
  2. ARM detail (margin, index value, adjustment caps, max/min rate)
  3. Loan amount
  4. Interest rate
  5. Points
  6. Other Lender Fees
  7. Mortgage insurance premium - upfront of monthly
  8. Lock expiration date
CNLs That Delay a Lock 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 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 will post its fees for a lock extension. If the CNL and borrower disagree on which was responsible for the failure to fund, the CNL agrees to accept the judgment of the ombudsman.
CNLs Disclose Their Fees to Lock and Their Refund Policies: CNLs disclose in advance the cost of a lock to the borrower, the disposition of the fee when the loan closes, whether the fee is refundable if the application is rejected, and whether it is refundable if the borrower opts out of the deal.
CNLs Disclose Their Policy Toward a Program Change After a Lock: If the borrower changes her mind about the type of loan she wants after the loan she no longer wants has been locked, the CNL will imposer a penalty that must be disclosed in advance.
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 Prices: 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.

Want to shop for a mortgage on a level playing field?

Why Shop for a Mortgage with the Professor?

  1. Receive His Help in Finding the Type of Mortgage That Best Meets Your Needs
  2. Shop Prices Posted Directly by His Certified Lenders
  3. Shop Prices Fully Adjusted to Your Deal
  4. Shop Prices That Are Always Current
  5. Get Him as Your Ombudsman Just in Case

Read More About the Support and Protections Listed Above

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