I'm working on renegotiating a locked rate for one of my clients. The lender will allow us to do so if it meets specific criteria (price and rate must improve by a certain amount). If I'm successful in obtaining a lower rate for my clients, I may potentially cause a delay in their transaction due to the Mortgage Disclosure Improvement Act (MDIA). Most lenders interprets MDIA as any change in APR, for better or worse, of more than 0.125% for a fixed rate mortgage.
So I'm requesting an interest rate improvement of 0.125% because the transaction meets the criteria to do so. If the lender approves the request, I am required to provide a new Federal Truth in Lending which will disclose the APR lower by 0.126%. This will trigger a three day waiting period before my client can sign their mortgage papers at closing. Luckily, the clock starts on the day of delivery (unlike the right of recession waiting period) and includes Saturdays.
Along with the Federal Truth in Lending, I am required to provide a revised Washington State's Loan Application Disclosure Form (no beef from me there) disclosing the change in interest rate.
Isn't it crazy that improving an interest rate for my client could possibly trigger a delay in closing?