CRAZY LENDERS

Well, it’s still summer, and it’s still vacation season. I have been crazy busy this week. Yet, in spite of the lack of new material for you to read this week, I have had a few items rolling around in my head.

Everyone knows about the problems facing the lending industry. By now most are realizing that the problems run deeper than any of us would like to admit. The housing markets, nationwide, continue to slip and interest rates are again on a gentle rise.

At a time when an entire industry is in upheaval, individual mortgage lenders are not doing much to help anyone out. Rather than simplify the process and streamline procedures which would allow for lower costs, larger margins, and ultimately lower interest rates, lenders seem to be stubbornly holding to the idea that jumping through more hoops will somehow ease the problems facing our economy.

This week I had an otherwise easy and straight forward loan delayed by an entire week simply because there was a discrepancy between the address on the appraisal. You see, on page one of the appraisal the house was listed at 433 E. New Castle Drive. Unfortunately, on page 5 of the appraisal the address was listed as 433 New Castle Drive. Now, I am all for accuracy, but to hold off a loan for an entire week because someone left out an “E” seems a bit over the top.

WHAT DOES THIS MEAN TO YOU?

If you are considering refinancing or purchasing a new home, get your ducks in a row. The reality is that it is taking longer than before and underwriters are being pickier than before. Just understand that every lender seems committed to saving the economy—one loan at a time! That means that when your Loan Officer asks for documents that would otherwise seem foolish, it is likely that he or she is just trying to think ahead to avoid any ridiculous delays.

Eventually this whole thing will sort itself out. In the mean time, we all have to adjust our expectations a bit.