In a purchase transaction, the borrower locks a rate on day 1. The lock expires in 30 days but closing is delayed to day 35 due to the lender. Who typically bears the cost of a rate lock extension?

Correct answer: The lender, if the delay was their fault

If a rate lock expires due to lender delays, the lender typically bears the cost of extending the lock or honoring the original rate. If the delay is caused by the borrower, the borrower may need to pay for a lock extension or accept the current market rate.