When Mortgage Magic opened 26 years ago, the mortgage process was far different. Everything was done manually including loan applications, disclosures and credit reports (2-3 days to receive). Employment and bank accounts were verified by mail.
When processing was completed, the appraisal and all verifications were received and the loan option chosen, two copies of the completed package were made and the original and one copy were placed into a “Trans-Box” envelope and deposited into a dedicated drop box.
Once received, lenders logged in the loan, sent the original to underwriting and the copy to the appraisal/verification department. Within a few days, the loan was approved and loan documents printed. Barring complications, loans closed within thirty days or less.
Today, systems are automated. Application information and disclosures are entered directly into a loan processing system, to be uploaded directly to the lender, as is the credit report which takes minutes to obtain. Client provided documentation is scanned and emailed to the lender.
The entire process is supposed to be faster. But…you know what? It isn’t! Why? Because of new regulations and disclosures with their required waiting periods! Though perhaps well intentioned, the legislative changes don’t really help consumers. Had existing regulations been adjusted a little, and properly enforced, the process would be faster and less costly for both lenders and clients. That would have helped consumers and lenders alike!
Even with additional delays, rates are very attractive and, for those who may benefit from the low rates, the annoying delays are worth it considering the potential savings. I’m happy to help you determine if you could save as well.
Joe Adamson (408) 975-2400 x123 NMLS #234559 BRE #01090504
Mortage Magic NMLS #331340 BRE # 01104088 www.mortgagemagic.com
