The Perfect Storm – Low Rates= Extended Underwriting and a Lack of Funding Lines!
With rates jumping down in December and loan submissions tripling due to this we have another crisis on our hands. At First Priority Financial alone our business went up 30% in December (mine more). In January we doubled our normal production. Our numbers mirrored that of the industry. So basically we took all this new found business and shoved it into an industry that had experienced many cutbacks of guidelines and manpower. What you get when you do that is the perfect storm. In late December and January we saw unusually long underwriting times (we are still experiencing this, although not as bad). The business that did get moved along to approvals are now in docs and funding. Guess where our headaches are today?? Docs and funding lines are far over capacity. As with all other hurdles we’ve been through in our industry, we will get through this one also. The bright side is that we have business to close.
