Lenders Claim Loans Can Close in Weeks
March 27, 2019
Over the few weeks, Chase and loanDepot both announced new programs that can close mortgage loans in less than a month.
Through their programs, Chase can close a loan in 21 days while loanDepot will get their customers the keys to a new home in eight days. According to Ellie Mae’s latest Origination Report, the average time to close a loan is 43 days.
Chase reported that for existing customers—including those with a checking account, credit card or car loan—the lender will close within 21 days under the Closing Guarantee program. If the applicants do not close on their home within the 21 days, Chase will give them $1,000. The offer is only available for new, residential first-lien loan applications submitted directly to Chase.
“We’re here to help our customers get into their new homes as fast as possible,” said Sean Grzebin, head of mortgage originations for Chase Home Lending. “Our Closing Guarantee underscores our dedication to our customers and what matters to them. We want to reward our loyal Chase customers looking to buy a new home – with competitive rates, a chance to earn Ultimate Rewards points, discounts, and now the edge on speed.”
Meanwhile, loanDepot rolled out a new end-to-end digital loan process that allegedly close a loan in just eight days.
Called the mello smartloan, loanDepot said its technology and data can shave up to 80 percent of the work required from application to loan close.
"We designed the mello smartloan to mirror the digital experience that today's consumer wants," said Anthony Hsieh, founder and CEO of loanDepot. "The mello smartloan leapfrogs decades of traditional industry reliance on paper documentation and physical files. Our unmatched technology accelerates beyond current front-end data validation techniques to eliminate homebuyers' biggest stressors: voluminous documentation requirements and extended loan processing and cycle times. The mello smartloan eliminates the paperwork and the guesswork, while delivering a great product at a great value."
loanDepot has invested more than $80 million in the proprietary technology that powers the mello smartloan. The company projects that up to 55 percent of new applicants will be eligible for the digital process.
loanDepot said the mello smartloan converts these services digitally in real time:
- Income, asset and employment verification
- Credit checks
- Appraisal, title and flood validation
- Closing
“We built the mello smartloan with one goal in mind – the customer experience, where obtaining a loan complemented our customers’ digital lifestyles,” said Tammy Richards, COO of loanDepot. “We are committed to making the entire end-to-end loan process easier, faster, stress-free and a natural extension of our customers’ lives.”
In a artice by HousingWire, several loan officers didn't buy the marketing ploys. This is what HousingWire reported one loan officer saying:
"More marketing schtick! I’ve been originating loans for over 33 years. In that time I’ve moved 4 times. With two dogs, a teenager, a working spouse and a very busy life, I can’t imagine why anyone would want to even think about moving in 21 days, much less 8! Every originator and Realtor knows when human beings are in the process of buying a home and moving they go from a rational level headed existence to an emotional roller coaster. We leave the tea-cup ride at Disney and head directly to Space Mountain. Now we want to suggest they do so and bring all their belongings with them? I tell Realtors all the time. Schedule a 45 day close and be prepared for the smoothest transaction, great results, happy clients and future referrals. I can close in two weeks now. It’s a carnival show every time. The homebuyers and sellers are stressed not so much do to the process, but due to compressing their lives into a ridiculous window of time. Hell it takes me a couple of days to find my car keys sometimes, you want me to move my family in 8?? Thanks but uh, no."
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