Can a lender charge a Commitment or Rate Lock Fee?

All fees charged to the Borrower must comply with all applicable federal, state and local laws and disclosure requirements.  

The Mortgagee may charge the Borrower lock-in and rate lock fees only if the Mortgagee provides a lock-in or commitment agreement guaranteeing the interest rate and/or discount points for a period of not less than 15 days prior to the anticipated closing. 

For additional information see Handbook 4000.1 II.A.6.a.x.(B)(3) available at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04511