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FHA Funded in under 30 days

By
Mortgage and Lending with Franklin Loan Center

Why are FHA loans taking so long?  Conventional loans used to take 2 to 3 weeks, now I'm waiting for 45 days minimum.  Well Ladies and Gents, the world has changed once again.  Conventional loans for purchases have gone by the wayside for the most part because they are affected by the "soft market" status that appears on the appraisal.  With that moniker the guidelines changed and the maximum Loan To Value is reduced by 5%.  So in a matter of months everyone wanted/needed to to FHA since this 5% reduction in LTV doesn't exist in FHA.  Ok, Ok so everyone wants one, the big boy banks should have seen this coming right?  Wrong.  Here in the Coachella Valley there is only one bank that is fully staffed for FHA with a DE underwriter (FHA) Funder, and Processor.  Franklin Loan Center is the only bank in town that can process and fund a FHA loan in under 30 days.  All the major banks (Countrywide, Chase, Wells Fargo, B of A, Indymac, Wachovia, Etc.) have centrally located processing, funding and underwriting.  This is a move that helps them control their process, and efficiency, as well it lets them cut down on their overhead.  Here's the kicker, none of them are "centrally located" here in the valley.  They all have to send their applications to a different city, sometimes a different state. We don't. On top of that, they are vastly understaffed for the volume they are doing.  We can handle the amount we are receiving, and becuase we can set priority of loan aps, we can push it through.  Ask your loan officer at a major bank if they can deliver in under 30 days?  Not happening.  They may say yes, but you'll still be waiting for an answer on day 45.  It just the way the market is.  Sure it will change again, but can you afford to wait until it does?

Andrew Wardwell