BEST EFFORTS PRICING POLICY

The following is a brief overview of our pricing policy.  To view the complete policy, please click on the link above.

1. Extension Policy
The Correspondent must request an extension prior to the Lock Expiration Date for loans that have not yet been delivered, or prior to the Target Fund Date for loans that are in-house but not yet purchased.  A loan is considered expired and must be re-locked worse case if:

 The following extension fees will be assessed and deducted from the buy price.  A new confirmation will be faxed to the correspondent reflecting the changes to the pricing, Lock Expiration Date and Target Funding Date.

Number of Days	Cost (Price)
5 (one-time)	No Charge
7	0.125
15	0.250
30	0.375

For original lock periods of 15 to 45 Days, Correspondents will not be limited to the number of times they can extend a loan as long as the original lock period plus extensions do not exceed 90 days.  If the remaining number of days in the 90 day period is not an increment listed above, the Correspondent will be charged the increment plus 1 basis point for each additional day needed.  Should the loan be extended beyond the 90 day period, the Correspondent will be assessed worse case pricing for each extension thereafter. 

For original lock periods of 60 days and greater, Correspondents will be able to extend the initial 60 day or greater lock up to 30 days.  The Correspondent is not limited to the number of times they can extend a loan so long as the loan is not extended more than 30 days.  Should the loan be extended beyond the 30 day extension period, the Correspondent will be assessed worse case pricing for each extension thereafter.

2. Re-lock Policy
Locks that have expired will be re-priced based on the original lock plus a roll charge or current market, whichever is worse.  The new lock term must cover the number of days from the original Lock Expiration Date to the new Lock Expiration Date, regardless if the loan has been delivered or not. Locks that have been expired for more than 40 days will be re-locked at current market, using the prevailing rate sheet.

3. Delivery Requirements
It is the responsibility of the correspondent to deliver a loan in fundable condition on or before the Lock Expiration Date. If a loan cannot be delivered by the Lock Expiration Date, it is the responsibility of the correspondent to call and request an extension.  Loans delivered after the Lock Expiration Date must be re-locked per the Re-lock Policy listed above.

4. Target Fund Dates
The Target Fund Date is the deadline for a loan to be purchased by National City Mortgage. Typically, this is 10 days after the Lock Expiration Date of the loan and is stated on the Lock Confirmation and the Suspense Notification. National City Mortgage recommends that files are delivered immediately following the closing or disbursement date to ensure timely purchase. If a file is delivered on the Lock Expiration Date, normal turn time will cut into the grace period.