Loans closed in May closed in just 44 days, down from an average of 50 during the first quarter of 2013 and 48 during all of 2012, according to Ellie Mae’s Origination Insight report.
Companies can reduce turn-times when capacity is outpacing demand –when companies have more resources needed to process loans, according to Ray Brousseau, executive vice president of Carrington Mortgage Services in Santa Ana, California. Lower overall origination volumes are the cause of this, he said.
Like most other mortgage companies working to stay ahead of competition, his is doing its best to keep closing times short. The company claims they can close FHA
and conventional loans in 21 days.
The greatest single delay in closing time to gather approval conditions, Brousseau added. Originators and processors need to effectively put together complete files to ensure conditions are set appropriately, he said.