Effective date of new rate

Effective date of new rate. The Board of Directors, at its regular monthly meeting sets the current rate of interest (posted rate) that is to be charged by the Agency. The Board will compare the current Agency rate with the Secondary Mortgage Market Rate charged by Lenders in the Agency’s lending area. When a majority of the Board members vote that an increase or decrease in the current approved rate is appropriate, the new rate of interest will be in effect for any application taken after the date of the meeting or exact date as specified by the Board. A. Proposed construction loans will be subject to the posted rate once the veteran notifies the VHPB in writing that they are ready to close and the loan has been approved by the loan committee of the Board of Directors. This rate is locked for a period of 45 days or until the loan documents expire, whichever is less. B. Loan requests in process, but not yet sent to the attorney for closing, will be set at the new posted rate of interest or the existing rate at the time of approval by the loan committee of the Board of Directors, whichever is lower. The stated rate is locked for a period of 45 days or until the loan documents expire, whichever is less. C. Loan requests that have been approved without a property or a request for pre- approval will be set at the posted rate once the sales contract is received by the agency. The stated rate is locked for a period for 45 days or until the loan documents expire, whichever is less. D. Loan application requests having Board approval and a change in the rate of interest after stated approval, are not required to be once again presented to the loan committee of the Board of Directors for re-approval. The exception to this is when the rate of interest increase or decrease negatively affects the debt to income ratio causing the loan request to no longer meet the underwriting guidelines or causing a substantial change in the financial status of the customer.