TOPIC: Interest Rate


Manager at a bank ($4.2BUSA)
In NY we are required to provide an Interest Rate Disclosure to the mortgage loan applicant to make them aware of when their interest rate for their loan will be set.  We are going to a new loan vendor and they use DocMagic to generate the loan documents.  

We lock our rate at application.  The DocMagic form does not have that option.  The DocMagic vendor is recommending that we use a Lock-In-Agreement instead, using the date of the application as the Lock In Date.  My concern is that we are not advising the applicant when the rate will be locked (prior to locking).  Maybe it is just semantics.  Does anyone else in NY, lock the rate at agreement and have Doc Magic as their loan document vendor?  Do you use the Lock In Agreement?

I look forward to hearing your thoughts.       

    Abrigo Acquires Farin Financial Risk Management

    Abrigo, a leading technology provider of compliance, credit risk, and lending software, has acquired Farin Financial Risk Management (FARIN), an industry trendsetter in asset liability management software and advisory services.

    FARIN offers services and solutions that are essential for financial institutions in determining interest rate and liquidity risk exposures. Learn more about how Abrigo, now with the added power of FARIN, is making big things happen for community financial institutions.

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      Blended APR

      Employee at a bank ($7.1BUSA)

      Is everyone disclosing a fully indexed rate at consummation or within 45 days of consummation for the remaining loan term on their discounted rate (ARM construction ) loans? If you are, are you doing a 1 or 2 part construction closing?

        Interim construction note APR calculation

        VP at a bank ($267MUSA)

        We currently do both two-time and one-time closes for home construction loans. The interest only construction period is twelve months. Our rate is the same for the interim construction only period as it is for the term note once the home in completed. However, when we are calculating the APR on the term loan, we calculate that over the term of the loan. Should we be calculating the APR on the interim construction note over twelve months OR can we do it over the term of the term note, since the intention is to roll the note into payout? If we calculate it for twelve months, then the APR is much higher than the stated rate. For example, a rate of 4.5% would have an APR of 7.092% if only calculated over 12 months. That just seems so high. If we use the longer payback period, it would be more like 4.64%. Any feedback is appreciated.

          Commercial Loan Pricing Model

          Employee at a bank ($233MUSA)

          We are considering implementing a commercial loan pricing model. Assumptions are based on loan/relationship size, internal/external cost of funds and non interest expense history. What kind of fair lending or other compliance issues can be associated with interest rate discounts and deviations from the recommended rate?

            How Do You Anticipate Upcoming Fed Decisions?

            President at a bank ($385MUSA)

            If you and your team are not already using it, I highly recommend you use the FedWatch tool at

            With it we can track how the investors in fed funds futures are expecting the Fed to manage overnight rates in coming meetings. It is the best tool available to realistically anticipate future pricing conditions. Are you using it?

              [FREE CBANC Webinar]: Improving Banking Customer Service

              Person at a Company (USA)

              Hi all! We have a great free educational webinar coming up from Al Rosenbaum at Silvercloud on how to improve customer service and engagement at your FI. This is such an important theme today as there continues to be more competition in the market (ESPECIALLY FROM THOSE NON BANK/CU FINTECHS). Register today (if you can't make it register anyway to receive the playback) for the webinar on 1/25 at 1pm CST. Learn more and register here:

                2017 Credit Union Call Center & Benchmarking Survey

                The results are in from this year’s 2017 Credit Union Contact Center Benchmarking Survey conducted by Strategic Contact. Register to learn how your institution stacks up and what key trends will impact your strategy for the year ahead. Registrants will also receive a link to download the results of the survey following the webinar.

                Join Lori Bocklund, President of Strategic Contact, and Al Rosenbaum, EVP of Customer Success at SilverCloud Inc., as they discuss the impact of and insights behind this year’s results. Gain a better understanding of the current industry landscape, while learning how to improve your member service and respond to growing competition. In this webinar, we’ll focus on:

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                  Disclosure of Loan Rate Discount for opening a Deposit Account

                  AVP at a bank ($151MUSA)

                  We plan to offer a 0.25% mortgage rate discount for opening and maintaining a deposit account. The loan rate is fixed unless the deposit account is closed, then there will be a one time rate increase of 0.25%. Do you disclose based on the discounted rate? Do you provide variable rate disclosures for this loan? If so, any examples would be greatly appreciated...going in circles with Rag Z. Thank you.