Record-low rates are drawing a rush of buyers into the market and lenders are having trouble keeping up with the demand, with brokers reporting longer wait times for commitment letters.
“All the lenders are busy, so commitment letters are coming in slower as a result,” Jim Panasiuk of The Mortgage Department Corporation told MortgageBrokerNews.ca. “However, there are some lenders that are better than others; on the B-side Home Trust
are very quick.”
Last year’s Brokers on Lenders issue revealed brokers gave an average score of 3.7 out of a possible five for all lenders in the turnaround times category. The top seven were monoline lenders – meaning one lender type is reigning supreme in the area.
“I think the banks are taking one or two days and sometimes longer. They tend to tell us they’re busy but it shouldn’t take too long because the conditions are standard; you have to prove income, employment, property value,” John Lozinski of Verico
Lozinski Mortgage Corp. told MortgageBrokerNews.ca. “The monolines are pretty quick – First National in Ontario usually get back to me within a couple hours but it takes a little longer in Quebec.”
A number of broker channel lenders vowed in 2014 to improve turnaround times, including the lender ranked second in the category for the Brokers on Lenders survey.
“One area where brokers asked for improvements was with our turnaround times. So we streamlined and automated some of our underwriting processes to turn deals around quicker,” CMLS
Financial told CMP for its Lenders Reply issue in late 2014. “We also hired more staff, including more underwriters, document specialists, a new associate director of national underwriting, and an escalation manager.”