75% of closings are late and taking longer than 30 days?

By
Mortgage and Lending with Alterra Home Loans

I met with the branch manager of a title company here in Vegas last week and she asked me how fast we were closing our loans.  I told her that we are closing them in 30 days or less and that we just closed two FHA 203(k) Streamline loans in 21 and 25 days - she was amazed.  She then proceeded to share with me that she just performed a comprehensive review of all of their files they closed over the last three months and she said that 75% of them closed let with an average closing time of 45 days.

I was surprised because so many Realtors who I meet with whose business I'm trying to get tell me that there lenders always close on time...until they get so tired of them not closing on time that the truth comes out.  After my FHA 203(k) Streamline deals funded, I visited the office of the Realtors who handled those transactions and met with a few Realtors who were extremely frustrated with being strung on by their lender and noted that this has been going on for a while.  The ironic thing is that her lender is a former boss and his assistant, also a former co-worker.  The three agents we met with in that office all said they were going to start using us and we are now looking forward to the deals they say they are going to switch to us.

The side note here is how often we hear from the banks that they aren't going to grant any more extensions yet if 75% of the deals are closing late, that means that either they are granting long enough extensions or they are granting whatever extensions are needed if certain milestones are met by the expiration of the current extension.  I'm curious about your experience regarding late closings from your lender as well as your experience with getting extensions from the REO or short sale lender.  Please comment and share your thoughts and experiences.

Posted by

D. Jed Wunderli

Certified Mortgage Planner

Alterra Home Loans

702-812-1214

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Rainmaker
109,246
Larry Costa
Century 21 Classic Gold, Carver MA - Carver, MA
Realtor, MA Real Estate

Its amazing how these loans can vary by mortgage company. i have a guy who can do Streamlines in 30days or less in my area but up in the Boston area banks are quoting 60+ days. I think its a matter of knowing the product and having "in House" underwriting"

May 03, 2011 04:56 AM #1
Rainer
82,552
Jed Wunderli
Alterra Home Loans - Las Vegas, NV

I think that some of the variance is in having control of the process by having in-house underwriting and funding but the other part of the equation is having a partnership with the contractor who is doing the work.  I have a great contractor who we recommend to our clients and because of our relationship, we already have all of his stuff on file and he gets us the bids in a very timely manner and they are prepared according to the guidelines so we are able to expedite that part of the process more so than lenders who work with a variety of contractors but never build a relationship.

May 03, 2011 10:40 AM #2
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Rainer
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Jed Wunderli

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