Posted by Blueink_TN on 7/27/12 8:07pm
Msg #428384
What a difference a day can make
Some ask why EOM is such a crunch time to get the loans signed. Let me give you an example - True Story.
I had an FHA streamline that was targeted to close yesterday. It got delayed and this is the fall out:
A full month's interest was added to payoff (FHA rule). This put the borrower short to close so the interest was added to the loan amount, which changed the loan-to-value causing the borrower to lose lender credit, so once again the borrower was short to close. So now, the loan amount is higher, the monthly payment is higher and the borrower needs to bring hundreds to closing. In this case, the one day delay cost the borrower $1200.00. Not a happy camper 
As for the loan officer (me), this file, if closed on Thurs., would have put me in a bonus situation for this month. So yes, the LO and the borrower both have a monetary reason for getting the loan funded by the last day of the month. FHA refinances can be very costly if closing is delayed by even one day.
| Reply by MW/VA on 7/27/12 8:17pm
Msg #428388
That's the real story all right. We have a lot of FHA or VA
loans in my area. There's a real push to get them closed to fund by the end of the month for obvious reasons. I can't complain though, because those "streamlines" have kept me in business the last couple of years. :-)
| Reply by Linda Juenger on 7/27/12 8:26pm
Msg #428391
Why was it delayed from yesterday? And why wasn't it ready
for Wed or Tu?? Why, Why, Why is it always down to the last day, crunch time????
| Reply by Blueink_TN on 7/27/12 8:42pm
Msg #428393
Great questions Linda
LO's always watch for lender turn-times and plan accordingly. Sometimes, the turn times change within minutes due to the pipelines churning out more loans than the lenders manpower can process in the listed turn time. I know that at least one lender I have loans with had employees working until midnight Wednesday night trying to get caught up so there wouldn't be delays.
When you get late docs, it's because there are too many loans for the lenders to process and they are trying their darndest (is that a word) to get the docs out so the closing can take place as planned.
| Reply by TheCloser123 on 7/27/12 9:24pm
Msg #428398
Re: Great questions Linda
Mmmmmmmm I do not miss my LO days. Kudo's to you Blueink! I had responded to an EOM question earlier in the day about why crunch time is so important. I made the interest remark. It is so critical to be flexible and understanding in this environment. The lower rates are what keeps the phone ringing for signings, and for that I am thankful. When I find myself getting frustrated by last minute packages, I just take a deep breath and say thank you for the fact that I have business. :-)
| Reply by Blueink_TN on 7/27/12 9:49pm
Msg #428403
Thanks for the Kudos !
Yes, the lending industry is the place to be right now. I have more business than I have time to handle. If I were 20 years younger I would be killing it! But at this point, I don't have the energy nor the motivation to work long hours and deal with the stress. I close between 3 and 6 loans per month and since I've been licensed for two years now, my business is mostly referrals.
Any of you signing agents out there that would be interested in something more, this is the time to take the plunge - I would encourage you to find a lender/broker willing to hire you and help you with the licensing regulations. The test is a killer, but if you study, you can pass it.
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