Through the Santa Ana, Calif.-based company’s wholesale lending division, the program provides 30-day loan closings for borrowers looking to purchase properties. Carrington said this program only applies to FHA and conventional purchase loans.
Last month, Carrington presented a similar offering through its retail division.
As part of the program, Carrington said it will process any qualifying loan from the time that a file is submitted to underwriting all the way through when the funds are closed within 30 calendar days. If this execution does not happen, Carrington will apply a $995 closing credit to the loan at the time of closing.
Carrington said the purpose of this program is to significantly reduce closing times compared to industry averages. In 2012, according to an Ellie Mae Origination Insight report, the average time to close a purchase loan was 46 days, while it took about 49 days to close a refinance loan.
Furthermore, processing can take longer, possibly an additional 60 to 90 days, the report said.
This new loan closings launch compliments Carrington’s ongoing “FHA Streamline Ready to Close” program, which offers closings on eligible refinance loans any day of the month with no additional interest cost to the borrower regardless of when the loan is funded. This enables borrowers to close on their own schedule and take advantage of possible lower rates.
Both of these programs also expedite compensation timelines for brokers and helps alleviate concern among real estate agents over sales lost due to a homebuyer’s inability to close in a timely manner.
“These shorter turn times bolster broker, agent and consumer confidence with this 30-day closing commitment,” said Ray Brousseau, executive vice president of Carrington Mortgage Services mortgage lending division in a press release. “Over the past year, we’ve worked diligently toward refining and expanding our operational processes to deliver maximum efficiency and give wholesale brokers an edge over traditional retail lending institutions.”