15 AAC 151.940. Commitment fees and procedures

(a) Unless otherwise provided in the regulations of the Corporation, the Corporation will charge a commitment fee based on:

(1) a percentage of the initial principal amount of the loan (including the cost of mortgage insurance financed by the loan) for a loan that the Corporation will purchase equal to:

(A) one-half percent for a 180 day commitment (for new construction only);

(B) three-eighths percent for a 120 day commitment; or

(2) one half the applicable percentages in (a)(1) of the initial principal amount of the loan for a loan that the Corporation will purchase pursuant to the delegated underwriting program described in 15 AAC 151.920.

(b) Unless otherwise provided in the regulations of the Corporation, the Corporation will charge an extension fee which the seller must pay before the Corporation will agree to a 30-day extension of the Corporation's commitment to purchase a loan under this chapter. The extension fee is equal to one-fourth percent of the initial principal amount of the loan. The Corporation will charge a separate extension fee under this subsection for each 30-day extension but will not permit more than three extensions for a loan.

(c) The Corporation will, in its discretion, waive the commitment fee or extension fee required by this section for a loan made to refinance a prior loan.

(d) The Corporation will provide for a procedure of commitment by sellers to deliver qualifying mortgages for purchase by the Corporation at an interest rate fixed in the commitment; except as otherwise provided in the regulations of the Corporation, the commitment procedure will provide for commitments to purchase mortgages by the Corporation for an initial maximum period of 180 days from the date the commitment is signed by the Corporation and will provide for payment of the fees described in this section; the procedures shall further provide

(1) that upon cancellation of a commitment, a request for a future commitment for a mortgage at a rate lower than that previously committed to will not be accepted for a period of 90 days after the date of cancellation of the prior commitment; provided, however, that if a rate reduction becomes available because the application has been made under a different program of the Corporation the rate for the refiled application shall be the rate established for that program at the time the original commitment was made by the Corporation; and

(2) for other details necessary for the operation of the commitment procedure.

History: Eff. 5/7/93, Register 130; am 4/2/97, Register 142; am 5/29/2002, Register 164

Authority: AS 18.56.088

AS 18.56.090

AS 18.56.098

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