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There is a strange trend occurring in the mortgage loan industry lately.  We have buyers willing to buy, we have sellers willing to sell but are the lenders willing to lend?  Out of the 8 closings our team was scheduled to close this month, 7 were delayed.  The delay was anywhere from 3-10 days.

The reason for the delays?  Paperwork. Yep!  There is nothing new about the paperwork needed.  The paperwork needs might be stricter but why would a lender not know that?  There is no need to ask for additional paperwork on the day of closing.

The underlying issue?  I feel that so many of these lenders are "disconnected" from each other.  The originator, processor and underwriter are not communicating.  Aaron calls this "the farthest from the point of the sword". The borrower is sitting right on the tip, the loan is the most important to them. The seller is sitting right next to the borrower.  Even the loan of their new home might even be delayed pulling more people into the cycle.

The solution? Communication. Compliance. Calm patience. Keep in touch with your lender. Check on a regular basis to assure they have everything they need.  When they tell you of another item, get it to them now, without delay. And once the loan "has been sent to the underwriter" expect another list of needed items to come up.  Jump on that list and get the items to them immediately.  Yes, some of the items might have been asked for or explained already. 

Is there any way to avoid it? Remember, one of these scheduled closings actually closed on time. How? The company I was allowed to place the buyer with communicates.  The buyer had everything they asked for in their hands immediately and...there was consistent communication between the originator and the underwriter. Closed in 16 days!  Choose your lender well!