Health & Fitness
Does Anyone Want Mortgages to Close Quicker?
The Dodd-Frank Act and the regulations it has created for the mortgage industry have extended the time it takes to close a mortgage loan.
I took a mortgage application on August 1st. $250,000 purchase price, $50,000 down, 750 credit scores and great income. We got the approval today, there were 32 conditions that need to be handled prior to getting a clear to close.
We close lots of loans with this lender every month, so I decided to contact the underwriter on the file to find out why all these conditions were required? The underwriter went right down the list with me. Nineteen of these conditions were items that need to be available, as a result of Federal regulation that have come into existence in the last three years. If it wasn’t for these 19 items, that would leave 13 items. The 13 items are really pretty simple. The 19 items are like an inquisition, stuff that doesn’t make it a better mortgage.
The sooner that Dodd-Frank is repealed, to sooner the consumer can stop overpaying for the cost of doing a mortgage and stops being tortured. One of the loan officers in my office, calls it “Mortgage Waterboarding.” How sad!!!!!
