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23 April 2009 | News
Improving
clarity for customers – date changes to
MLA
This is to let you know about a recent change
that we made to the Mortgage Loan Agreement (MLA) to make key dates
easier for customers to understand. This was in response to
feedback we have received from yourselves and customers.
Details of the change:
For fixed rate cases, there were two dates we
referred to on the front page of the MLA. These were the “valid for
date” (which used to be stated as being four months from the offer
date) and the date the fixed rate funds were available until (the
drawdown deadline). To improve the MLA, now it just states the
earliest of these two dates rather than both of them. This means
that:
- all MLAs now show an actual date as the ‘valid until’ date,
rather than stating that the offer is valid for ‘four months’,
and
- that date will be 120 days from the offer date or, for fixed
rates, the drawdown deadline if the drawdown deadline is
earlier.
After 120 days:
- All applications will be re-scored if the mortgage hasn’t
started within 120 days.
- For fixed rates, if the drawdown deadline is reached before 120
days, the customer should choose a new product, but won’t be
re-scored until 120 days have passed.
Caseflow:
If changes are made after the original
application has been submitted, Caseflow will automatically re
credit score the application if the data changed requires it (for
example name change, or product change). This will happen
regardless of whether the application is within the 120 day credit
score period or not.
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