Encompass™ plan codes can act as a specific loan product configuration which is used to standardize the loan origination process and ensure that loans are being processed in accordance with the lender’s policies and regulatory requirements.
Lenders may lock a loan in TPO Connect from 9:30a-5:00p (central) excluding observed holidays. Existing files and conditions can be uploaded at any time.
IHDA's lock policy remains unchanged. For reference it is,
When the commitment/reservation is made, the interest rate is locked for 60 days regardless of future rate changes. IHDA/U.S. Bank HFA Division must purchase loans by the 60th day. If a loan has not been purchased by the 60th day, a 25 bps reduction in Service Release Premium (SRP) will be made for every 30 days past the initial 60-day lock period. If a loan has not been purchased by the 90th day, IHDA is under no obligation to purchase the loan(s).
On any loan in which the lender expects to deliver at 90 days or after, the lender must contact IHDA (mortgage@ihda.org) informing that it is still an active file and requesting postponement of the cancelation. IHDA must make an approval/acknowledgment and the MITAS system noted accordingly by IHDA staff.
After cancellation, IHDA will not allow a re-registration by the same borrower(s) for 60 days unless the borrower has obtained a contract on a different property. It is suggested that a lender reserve/commit the loan when the appraisal has been received and the loan file is fully complete. Once a loan is reserved/committed, the lender will perform a review of the loan file for tax code compliance and for credit underwriting - each of which is a separate and unique review.
IHDA loans can be inputted into TPO Connect without locking the rate and can live within your pipeline unlocked. Once you go through product and pricing, and then lock the loan, the 60 days will start and IHDA will consider it an active loan.
If the lock is cancelled, you cannot relock the same property until sixty (60) days since cancellation date in TPO connect has passed unless the reason for the cancellation is due to contract fall through (see below).
IHDA Mortgage Locks Follow the Property: If a contract falls through (for any reason) and the subject property address changes, the existing lock must be cancelled, and the lender must lock the loan for the new property at the current day’s pricing.
If a lock has been cancelled but needs to be reinstated, the pricing of the original lock will apply as well as the number of days elapsed when calculating the SRP paid.
