Lender Guidelines: 9.1 Cancellation and Commitment Expirations
The Lender is responsible for cancelling all mortgage loans subject to a reservation if the mortgage loan will not be delivered. Please note, should the Lender cancel a reservation, the Lender will be prohibited from making another reservation for that borrower for a period of 90 days unless otherwise authorized by TSAHC.
a. In a case where the borrower cancels or withdraws his or her application, the reservation of funds must be cancelled by contacting TSAHC.
b. In a case where the Commitment expires, the Lender must request an extension using the Extension Request Form available through the Lender Portal, and provide the new estimated closing date.
In all cases, the expiration of the commitment without a cancellation or extension by the Lender may result in the Lender being placed on “Inactive Status”, meaning the Lender may submit no new reservations until the problem is resolved. Failure to comply with this provision may result in the Lender’s termination from the programs.
For access to the full TSAHC DPA & MCC Guidelines, please click here.