Over-Delivery / Price Adjustment Fee Examples

EXAMPLE 1

Charge based on difference in price if agent fee on day funded - end of day price sheet - is less than when locked in

• Take down a Delivery Commitment (DC) for $100,000 at a price of .50 (premium)
• The delivered loan is $120,000
• Tolerance rule – maximum delivery would be $105,000
• Out of tolerance by $15,000 and today’s end of day price is .75 premium (based on days remaining in the DC)
• The current price is better; no fee charged

EXAMPLE 2

Charge based on the difference in price if agent fee on day funded - end of day price sheet - is less than when locked in

• Take down a DC for $100,000 at a price of .50 premium
• The delivered loan is $120,000
• Tolerance rule – maximum delivery would be $105,000
• Out of tolerance by $15,000
• The current end of day price is .25 premium (based on days remaining in the DC)
• Fee charged – based on the amount out of tolerance and the difference between the DC price and the current end of day price; because the current price is worse
• $15,000.00 X .0025 = $37.50

EXAMPLE 3

Charge based on difference in price if agent fee on day funded - end of day price sheet - is less than when locked in  

• Take down a DC for $100,000 at a price of .50 premium
• The delivered loan is $120,000
• Tolerance rule – maximum delivery would be $105,000
• Out of tolerance by $15,000
• The current end of day price is -.10 a discount (based on days remaining in the DC)
• Fee will be charged – based on the amount out of tolerance and the difference between the DC price and the current end of day price; because the current price is worse
• $15,000.00 X .0060 = $90.00