Promises from Lenders

Good allied professionals are  the most valuable part of our being professional...and then there is when the buyer chooses Uncle Fester the lender...ewwww....

We all need lots of patience in this market and loan situation today. Temper flare - tears fall and we have to be there for these clients that don't do this everyday. 

Lending guidelines have definitely tightened in the last 3 years now. It sounds like the times that he quoted you were just the times of those 3 functions though (underwriting, closing, & docs out) and it didn't factor in everything else that goes on. 

What wasn't factored is in the time it takes the processor to review the file and assemble it for underwriting. There was no accounting for appraisals taking longer now since we can have no contact with the appraisers.  The title company must have adequate time to do the title search and prepare the prelim HUD and title commitment.  Fees changes after the initial disclosure can now be an issue with the recent RESPA and GFE requirements.   An underwriter typically sees a file at least 2-3 times before the final approval and clear to close is issued.  On their initial review, it is highly unlikely that every single item has been received and is exactly what is needed for a final approval the first go around. Underwriting turn times do vary daily based on the actual loan volume.  As you can imagine, that increases more as we near motnth end.

For every REO closing you must add 5 business days to a normal turn time.  This is to meet the advance closing package time requirement for a HUD to the seller 48-72+ hours in advance.  Unfortunatley, some loan officers will still agree to a closing date that they know to be unrealistic simply because they are afraid of losing the buyer to someone else.  That really does no one any favors.

Most REO sellers are now setting closing dates 30-45 days out.  Setting proper expectations upfront and a closing date that all parties can agree to is critical is this market.