The mortgage loan process requires many essential critical components. Some of these components consist of vendors, such as escrow companies, title insurance providers, as well as the IRS for tax return verification purposes.
The ability to obtain and confirm documentation from the various providers pertaining to a borrower’s ability to qualify is a crucial factor in determining how long it takes to wrap up a mortgage loan. While the mortgage industry wasn’t the only one to suffer from the setbacks of COVID-19, it was one of many industries to deal with a slowdown in timeframes due to delays from the various vendors and service providers that cater to mortgage loan companies.
A key reason for these delays is due to the transfer to a remote workforce which has not been ideal to efficiently serve the needs of the real estate industry.
Since escrow and title insurance companies are working remotely, they don’t have the same access to all of the necessary documentation required by mortgage lenders, which causes delays that often take 2-3 times longer. As a result, our closing time frames have been impacted drastically.
Another example is when all mortgage lenders need proof that tax returns have been filed by a borrower and need verification by the IRS. As of April 2020, the IRS is unable to provide assistance at this time as they have temporarily shut down the department that handles tax transcripts. Since it is nearly impossible to acquire this documentation, we are asking borrowers to provide proof of tax filings which is something we had never asked previously from our borrowers.
The bottom line is every aspect of the mortgage loan process is currently facing delays. We want to give our borrowers a warning that this is our new norm while shelter-in-place is in effect. We understand that COVID-19 is no one’s fault, and we are constantly making adjustments to every facet of our proprietary loan process to stay as nimble and dynamic during this turbulent time.
Bluefire Mortgage Group is accountable for every promise made to every borrower. Although the loan process is taking longer, we are trying to make things right. Our number one priority has always been to provide borrowers with a world-class experience.
We are always happy to discuss any questions/concerns that may arise and are available to discuss at (760) 930-0569.