showing patience in a difficult year

As 2020 comes to a close, I’d like to dedicate this post to all my clients, who were so patient with me through the ups and downs over the past year.

When COVID-19 broke out abruptly in March, the mortgage rate plummeted. That triggered a long slide to the bottom. Each time the interest rate dipped, the refinance activity surged, overwhelming lenders, who were understaffed and unprepared. The turn time slowed to a crawl: the longest I could remember.

Getting a preliminary report now takes one to two weeks. Loans sit idle four to six weeks before underwriters can get to them. The conditions take longer to clear. Once they are, it takes forever to close the loan. A few of my loans did not get funded three weeks after the loan documents were signed. It was mind-blowing.

The tightening of guidelines by the agencies made the matter worse. More paperwork are required. Credit report isn’t good enough any more. Each mortgage trade line needs a credit supplement to show it is current: a nightmare for borrowers with multiple properties. For the self employed, last two year’s business tax returns become almost meaningless, superseded by the need to show year-to-date profit and loss which must be audited and supported by recent bank statements. Even the W2 employees are affected: the pay stubs, normally valid for four months, are halved to only two months.

Granted, many of my loans were handled by the quick lenders, especially the purchase loans. And for the slower loans, lenders usually paid the extension fees. Still, I anticipated a great deal of groaning and moaning from the customers given the chaos. Things turned out to be the exact opposite. My customers taught me what empathy meant. Not once was I blamed for the slow progress. My customers understood the circumstances. They stuck with me through the thick of the mess. Many entrusted me with their second and third loans. I owe them a heartfelt “thank you!”