Underwriting is traditionally slower during the summer months, but brokers around the country are noting approvals have all but grinded to a halt this year.
“The last few months have been terrible in terms of turnarounds; I’ve had to ask clients and Realtors to get extensions on purchase agreements, which is unprofessional,” Ross Taylor of Mortgage Intelligence
Ross Taylor and Associates told MortgageBrokerNews.ca. “This time of year comes around every year, so lenders should be prepared, but (one lender) tells me up-front that they won’t even look at a deal for four days.”
According to a recent MortgageBrokerNews.ca poll, 86 per cent of brokers have had to wait a week or longer for approvals this year.
Of those polled, 40 per cent say they’ve had to wait no longer than seven days, 21 per cent have had to wait two weeks, and 11 per cent have waited three weeks.
Taylor falls into that last camp.
“On another deal I had to go to the president of the lender because an approval was outstanding for three weeks,” Taylor said. “It was eventually approved.”
A MortgageBrokerNews.ca poll held just prior to the summer rush revealed 65 per cent of brokers believe monolines offer faster turnaround times on deals, compared to 35 per cent who says bank deals result in less waiting time.
And while many industry players lament the increase in wait times, especially with monoline lenders, there are some brokers who say it’s been business as usual this year.
“The longest wait time I’ve had this year was three days,” Joseph Park of JP Mortgage Services told MortgageBrokerNews.ca. “My expected wait time is 24 hours.”
So what’s his secret?
“I’m very dedicated to the lenders I deal with and my funding ratios are very high,” Park said.
However, that may not be the golden ticket for brokers; most boast high funding ratios and dedication to their lender partners.
“I don’t know what it is, Park said. “I complain a lot.”