The Rythm of the Mortgage Lenders

One of the more frustrating aspects of being a mortgage broker is trying to manage the run-around that the banks give us. We may originate the deals, but it is the lender that controls the purse strings. When a lender's pipeline is slow, it will lower its rates to attract business...once the business flows in, the bank's processors and underwriters become overwhelmed, turn-times suffer, and then the bank will raise rates to slow the flow of business.

We try to provide the best possible customer service to our clients, but once we submit a file to a bank, we lose a lot of control. Banks typically promise 48 hours turn time once they receive a file or a document from us...well many times 48 turns into 72 or more...with no real explanation from the bank. Also, many lenders lose faxes on a regular basis, don't return phone calls, and claim to not have received e-mails. In the meantime, we are left to explain why a loan that should have closed in 2 weeks is dragging on and to three and then four weeks.....

So how do we counter this issue? We are continually on the look out for banks that deliver. We press our banks to keep their promises. We document are calls, our faxes and our e-mails. And most of all, we try to manage expectations....under promise and over deliver...
I know that our clients get frustrated from time to time, but believe me, we feel your pain, and share your frustration. Nobody wins untill the loan is closed.