Due to the current and impending rise in mortgage rates, GMFS is making a change to the qualifying note rate on OTC loans.

Effective today, February 16, 2022, the rate will no longer be a flat rate but will need to be priced in OB as you normally would price a loan.

Please see the below chart for an example of how the loans will be priced. For loans at or above 740 credit and at or below 85% LTV, there will be a 150 bps adjustment over your standard market rate and all other loans will include a 200 bps adjustment.

This rate will not be locked, you will instead “Update Encompass” as you always have when selecting the OTC loan product in OB. Your qualifying rate should match your initial LE that is in the file.