I see in an article that Bank of America is taking as long as 120 days to close a loan. It is such a problem that some experienced loan officers are leaving BoA for other companies that don't have the underwriting delays. You can read the article I read here.
I am not a lawyer, but here are questions for listing agents, buyer agents, lawyers, and consumers:
- listing agents: If a buyer is getting a loan through BoA, is it in the best interest of the seller to accept that offer without at least a kick out clause that allows for other offers where the buyer is not going through BoA, and there fore may not have delays?
- buyer agents: If your client has chosen BoA as a lender, is it in your buyer's best interest to stay with BoA or would they be better served by a lender with less delays? Lending delays could cause a seller to switch to a back-up offer rather than agree to a lender caused extension.
- lawyers: If your fees are set by the lender and are not hourly but flat, is it in your interest to take on loans that wil take up to three times as long to close as other lenders?
- consumer: Why initiate a loan application, or even a pre-approval for that matter, with a lender who you know will have problems closing in a timely fashion?
It seems like BoA wants to get out of the home lending business. If these delays are in fact true, then in my opinion, it is not in the best interest of any party to a real estate transaction to be involved with BoA. What do you think?