Loan Amount Reductions Prior to the Price Expiration Date

EXAMPLE 1

If the price is better at reduction, a fee is charged (rate down)

  • Take down a Delivery Commitment (DC) for $100,000 at a price of .50 premium
  • Deliver $90,000- Reduce loan amount using right side of DC screen in eMPF (Transactions tab/Delivery Commitment/enter DC #/Reduce)
  • The tolerance rule is not applied when a DC is reduced prior to expiration; the fee will be based on the amount of change
  • The reduction is  $10,000
  • Today’s price is .75 premium (based on days remaining in the DC)
  • Fee will be charged – based on difference between the DC price and the current price; because the current price is better
  • $10,000.00 X .0025 = $25.00   

EXAMPLE 2

If the price is better at reduction, a fee is charged (rate down)

  • Take down a DC for $100,000 at a price of .50 premium
  • Reduce DC to $0.00- Use right side of the DC screen in eMPF (Transactions tab/Delivery Commitment/enter DC #/Reduce)
  • The tolerance rule is not applied when a DC is reduced prior to expiration; any fees will be based on the amount of change
  • The reduction is $100,000
  • Today’s price is .75 premium (based on days remaining in the DC)
  • Fee will be charged – based on the difference between the DC price and the current price; because the current price is better
  • $100,000.00 X .0025 = $250