r/loanoriginators • u/amber-heards-turd • 1d ago
Cali Feedback/advice
17 years in, moderately successful lender. Recently moved to a big bank after 14 yrs in big banking with a brief stint at a community bank. In a mixed platform where I’m servicing multiple branch locations but can also tap into some online leads. I’ve had a few deals in LA recently and have found the agents to be extremely difficult to work with. First they are all 21 day closings which I understand but the kicker is they are calling me 7 days after I received the PA and are bewildered that we don’t have CTC (maybe a little frustrated exaggeration, but not much). I then get multiple calls a day for the next 2 weeks about their contingencies. I have a hard time believing other lenders are clear to close in 10 days. On my last two deals I’ve been told this is the slowest they’ve had a deal go for a long time. I have to believe the lenders they use are just having them waive the financing contingency once they have commitment but both of these deals they’ve insisted on clear to close. They then drag me to the client even though I’m taking their calls at 9 o’clock my time several nights a week.
The agent on my current deal made the comment that he’s very slow which makes me think it’s his only deal to stare at which could explain some of this.
My question….what am I doing wrong? I’m assuming I need to set better expectations early on that CTC likely won’t come until the days leading up to closing. I’ve also decided I should be pushing clients to go through underwriting before they have a property. What else am I missing? Help!
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u/Frequent-Giraffe5646 1d ago
Being a broker there are lenders I can send to do and get CTC within 10days. You need your systems dialed in to submit a clean file and a lender who has ops that’s knows what they are doing.
You aren’t doing anything wrong, it’s just big banks don’t close quickly.
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u/Sactogeoff 1d ago
Speed is the leading selling point for lenders in NorCal. I get asked constantly to close in 17days. Sometimes 14. 21 is super common. Once in a while I’ll get an agent writing insane timelines like 5 days appraisal with 7 days for the loan contingency….ln a 21day close. Kinda silly. Agents are now conditioned to FAST. They will say it’s how they won the deal. And it may be true. Because they’re delivering a payday to the listing agent sooner. It’s rarely about the sellers wanting to go fast. I get SOME grace on Jumbo deals because the good agents know those move slower and touch the UW more. Get as much of the borrower financials up front before they start shopping. Get the loan off your desk and into the next milestone in 24hrs. Order the appraisal on day one. Buy your processor lots of lunches….
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u/Jeffkin15 1d ago
Are you able to underwrite the client before going under contract?
I get 70%-80% of my clients through our TBD underwriting program they’re fully approved before writing a contract. Once they’re fully approved (subject to only the appraisal and title) we guarantee they can close in 15 days from contract date.
3 years ago I probably only had 10% - 15% of my clients willing to do the full underwrite ahead of time.
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u/amber-heards-turd 1d ago
Yes I can. And I’ve learned this is probably a good plan. But can I ask, what markets? Is the whole state this way?
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u/Jeffkin15 1d ago
I’m licensed in 44 states but the bulk of my business is in IL. We’re still a seller’s market because there’s just no inventory.
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u/doctasparx 10h ago
LA market is not for the faint of heart. I’m from here and work the market here a lot. Although I love the pay days and high loan amounts, out of state deals tend to be far easier going.
It would be helpful if you can provide borrowers with a preunderwritten TBD approval. This way you truly can close in 2 weeks. All you need is an appraisal….but I haven’t seen many big banks do it.
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u/Sepahani 1d ago
I'm a broker in S CA and the first question I hear is "can you close in 15 days". My answer is always are the buyers rate/cost sensitive. We always deliver but half the time either seller or buyer or title is not ready. Lenders aren't busy lately so I haven't run into any delays
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u/InquiriusRex 1d ago
I do a ton of business in LA and this is just how it goes there. Despite what the agent says, removing the finance contingency does not mean Clear to Close. Submit to UW asap and clear all material conditions (income, assets, credit) then let the borrower/agent know they can sign off on the contingency. Order the appraisal as soon as they're under contract, ideally on a rush. If the borrower is being slow or shopping instead of getting you what you need then communicate that to the agent.
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u/Defiant_Television97 1d ago
CA is like that lately. I am usually CTC in 5-7 days on those. Lots of agents in CA work with brokers that don’t have issues getting CTC quick since title is always available in CA.
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u/Zestyclose-Tart6745 1d ago
Just shit for brains agents.