Most people in our industry are hurting right now. Appraisers, brokers, loan officers, contractors, and yes, lenders. There appears to be lots of animosity towards lenders these days, and I think I understand most of people's issues. But, they are there to try and be a partner for us. Without them, our industry would stop.
When interest rates took a nose dive at the end of December, early January, loan officers were switching whole pipelines over to new lenders; burning good lock, and good approvals. It was crazy, because lenders then go so backed up that they are STILL trying to catch up. It costs a lender money to lock in money for a person. Yes, not a ton of money, but when it is multiplied by a couple of thousand, it hurts them greatly.
I never burn a lock unless I have to. I used to work at a lender, and I know how much work goes into a file for the person to just take it somewhere else. Already we are seeing lenders drop wholesale brokers because of the way they handle the lender. We have to stop them from doing this by being fully committed to taking a loan to said lender once we lock. I fear that if we do not, more lenders will cut us off, or pull the plug altogether.
Please pass this on:
http://tgalleg.typepad.com/my_weblog/
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