Post by Chris Jones on Nov 19, 2009 22:28:14 GMT -7
From Jeff Bouwhuis:
During the month of October, Bank of America approached City 1st Mortgage with the intent of capturing a larger share of our business. Many of you have noticed that they have led the market on most of their rates. Consequently the majority of our locks for the last month have been with Bank of America. Those deals are now working their way through underwriting and closing. As we have funded these deals through our standard warehouse line we have noticed a dramatic increase in the normal turn times. Because these loans were not cleared by Bank of America as quickly as we were used to this warehouse limit has now been exceeded.
We are now required to access another of our warehouse lines that had previously gone unused. It’s a great comfort to have another line at our disposal but there exists a very material reason as to why we’ve not been using this line: the fundings are usually delayed by 24 to 48 hours. It appears the warehouse line’s reasoning for this delay is driven by the paranoia of increased deficiencies caused by stricter adherence to compliance. Whatever the reasons may be, it has caused a temporary delay in fundings.
We have placed additional employees on this problem and anticipate having our original lines open in the immediate future, possibly within the next few days. In the meantime, purchase transactions will have priority as the original warehouse line funds become available. Until that happens please prepare those affected for the inevitable pain of a possible delayed funding. We are doing everything in our power to rectify this problem and will let you know of its resolution as soon as it occurs.
We appreciate your efforts and apologize for this temporary inconvenience.
Thank you.
Jeff Bouwhuis
During the month of October, Bank of America approached City 1st Mortgage with the intent of capturing a larger share of our business. Many of you have noticed that they have led the market on most of their rates. Consequently the majority of our locks for the last month have been with Bank of America. Those deals are now working their way through underwriting and closing. As we have funded these deals through our standard warehouse line we have noticed a dramatic increase in the normal turn times. Because these loans were not cleared by Bank of America as quickly as we were used to this warehouse limit has now been exceeded.
We are now required to access another of our warehouse lines that had previously gone unused. It’s a great comfort to have another line at our disposal but there exists a very material reason as to why we’ve not been using this line: the fundings are usually delayed by 24 to 48 hours. It appears the warehouse line’s reasoning for this delay is driven by the paranoia of increased deficiencies caused by stricter adherence to compliance. Whatever the reasons may be, it has caused a temporary delay in fundings.
We have placed additional employees on this problem and anticipate having our original lines open in the immediate future, possibly within the next few days. In the meantime, purchase transactions will have priority as the original warehouse line funds become available. Until that happens please prepare those affected for the inevitable pain of a possible delayed funding. We are doing everything in our power to rectify this problem and will let you know of its resolution as soon as it occurs.
We appreciate your efforts and apologize for this temporary inconvenience.
Thank you.
Jeff Bouwhuis