Carrington Mortgage Services is offering mortgage brokers a three-day turn time guarantee. The company said during the month of February it will underwrite and decision an FHA or conventional purchase loan in three days, upon complete submission to underwriting, or it will provide a $995 closing cost credit to the borrower. There are exclusions to this guarantee.
Rick Sharga, executive vice president, said the company wants to give the brokers who work with it a bit of a competitive edge. And, in turn, “we’re trying to give brokers a reason to work with us.”
He added Carrington has made a lot of improvements to its processes in the past year, since Ray Brousseau, executive vice president, mortgage lending, has taken over the business, and so it is able to do things more efficiently.
Sharga noted that no matter what channel it is, one of the problems right now is how long it is taking loans to get through the process. In the wholesale channel in particular, “that is frustrating for brokers, it is certainly frustrating for borrowers.”
Among the contributing factors for longer turn times has been the increased diligence underwriters are putting into files right now. As a result, time lines have become extended.
But in today’s market, with a shortage of homes for sale driving competition, “time can be one of the competitive advantages you can offer to your borrower/customer,” Sharga said.
One of the reasons why it can do this guarantee now is that Carrington has opened two new operations centers. The one located in Fishers, Ind., has been and still is where it has a servicing operation. The office in Enfield, Conn., is totally new. These join company headquarters in Santa Ana, Calif.
What it does for the company is provide it better coverage nationwide no matter what time zone the originator is in, Sharga said.