There are some banks deemed too big to fail, and those are the ones that have been the recipient of much taxpayer benevolence. Whether you agree with that or not (I do not, anything that fails should be allowed to fail, and someone stronger will step in to clean up the pieces), my contention is that big banks and most big institutions are simply too big to work with. Most large entities do not work well. Once you scale something up to a certain point in size, its impossible to make it function well. You can even
Blog Category: direct lender
Mortgage pipelines are backlogged thanks to record low rates, that simply keep breaking new records. These delays have created delays for many consumers trying to take advantage of low mortgage rates by refinancing. Customers of big banks report that they are unable to get a call back. One bank told a client that they would return the client’s call in 2-3 months!
I have cited a thorough and expensive research study several times recently in other blog posts. One message I have not relayed that comes from the data in that study is how poorly the big banks are at execution when it comes to doing mortgages in a timely and efficient manner. I will cut and past comments directly from the study that quotes numerous Realtors, and I will let their comments speak for themselves. Consumers deal with mortgage transactions once every 3-7 years, but Realtors deal with loans every day, and their opinion is the most valid, unbiased and relevant. I have heard a lot of reasons as to why a homebuyer thinks its best to get a mortgage from a big bank, all of them are wrong headed. I hear
The way that a mortgage lender is structured is critical in the current mortgage environment. One structure that is getting a lot of attention is direct lenders (aka mortgage bankers). What that means is that the lender is allowed to do the appraisal in-house, the underwriting in-house, preparation of the closing documents, etc. You could say they operate as if they were the bank. Further,