N.J. Admin. Code § 3:1-16.4

Current through Register Vol. 56, No. 9, May 6, 2024

Section 3:1-16.4 - Lock-in agreements

(a) All lock-in agreements shall be in writing and shall contain at least the following provisions:

1. The expiration date of the lock-in, if any;

2. The interest rate locked in, if any;

3. The discount points locked in, if any;

4. The commitment fee locked in, if any;

5. The lock-in fee, if any; and

6. A statement advising of the provisions of (b), (c) and (d) below if applicable and of the provisions of 3:1-16.6(a).

(b) The lender shall make a good faith effort to process the mortgage loan application and/or stand ready to fulfill the terms of its commitment before the expiration date of the lock-in agreement and any extension thereof.

(c) In the event a lock-in agreement is executed and the loan applied for is denied, the lender shall promptly refund any lock-in fee paid.

(d) Any lock-in agreement received by a lender by mail or through a broker must be signed by the lender before it will become effective. The borrower may rescind the lock-in agreement until receipt of a copy of the agreement signed by the lender by providing the lender with written notification of such rescission. Mailed notification of rescission shall be effective upon mailing. If a borrower elects to so rescind, the lender shall promptly refund any lock-in fee paid.

N.J. Admin. Code § 3:1-16.4

Amended by R.1992 d.149, effective 4/6/1992.
See: 23 New Jersey Register 2613(b), 24 New Jersey Register 3(a), 24 New Jersey Register 1380(a).