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Commitment Procedure Changes for Step Up and MCC

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Partner Solutions Team: mnhousing.solution@state.mn.us or 651.296.8215/800.710.8871
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7:30 a.m.-5:00 p.m.
Commitment Procedure Changes for 
Step Up and MCC

Effective for new Step Up and MCC commitments starting Friday, August 15, 2014, lenders have 45 days to deliver closed loans (previously 60 days). This is the period from the date of electronic commitment to the date of loan receipt by U.S. Bank, MRBP.
One 30-day extension is permitted at ½ point. If the loan is delivered within 15 days of the extension period, the servicer will only charge the lender ¼ point.
There is no change to the Start Up commitment period. 
Rate Lock Summary
If your loan is for:
Your rate is locked for:
Start Up
60 days from the lock date until the day of receipt by the servicer. 
MCC (with first mortgage)
45 days from the lock date until the day of receipt by the servicer.
Step Up

45 days from the lock date until the day of receipt by the servicer.

Hold Fees
If the servicer notifies you of a loan exception, you have a 10-day grace period to fix the exception(s) without receiving a hold fee. Fees of .125% of the loan amount accrue every 14 days after the end of the grace period, until the exception is cleared.
Refer to the Rate Lock Guide (formerly named the Commitment Procedure) for more information. 
Updated HFA Preferred Risk Sharing Product Description
We updated instructions on our HFA Preferred Risk Sharing Product Description for running HFA Preferred Risk Sharing™ loans through DU®.
  • Select "HFA Preferred Risk Sharing" in DU® using the "Additional Data" screen
  • DU® must recommend “Approve/Eligible”
  • A DU® recommendation of “Refer with Caution” is not eligible
Even if you receive an “Approve/Eligible,” the loan must also meet the requirements outlined in the procedural manual and product description.
You may have a loan that meets all Minnesota Housing program requirements, but receives a “Refer with Caution” recommendation. The loan must receive an “Approve/Eligible” from DU® in order to qualify. 
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