Mortgage Refinance Overwhelming Lenders 2009
The surge of borrowers looking for Mortgage Refinance has created somewhat of a phenomenon during uncertain economic times. Mortgage rates have dropped below 6% after the Federal Reserve announced its plan to buy mortgage-backed securities to loosen the tight hold on consumer lending.
The sudden drop in rates is proof enough the mortgage finance surge has found lenders under-prepared. This heightened activity seems to be happening during a time when they could really maximize on the opportunity to make up for the losses from last year's fiasco. Short-handed lenders are having difficulties following up with prospective customers and there are warnings to expect delays in applications as understaffed lenders race to fulfill requests for mortgage refinance.
Buying mortgage-backed securities has already started to take place as of the second week in January of 2009, as the plan of action the Federal Reserve announced in November of 2008. This has spurred even more activity for the mortgage finance business, also adding to the struggle lenders are currently experiencing after the financial downturn of last year, forcing lenders to downsize.
Consumers contacting lenders for mortgage refinance have been unsuccessful in speaking to anyone directly when calling lenders and some are left with the option of leaving a message for a return call. Frustrated consumers are unable to simply leave a message as lender mailboxes and voicemail are unable to support the volume of callers.
To make up for a shortage in staff, people from other departments experienced in finance within the lending institutions have been transplanted to handle the increase in mortgage refinance. The possibility of rates going back up has created a sense of urgency and worry. As we know the history of fluctuating rates, it is possible to see change from hour to hour.
When a consumer is told it could be two weeks before they can get back to you about mortgage refinance, I believe the best advice to give in this situation would be to contact as many lenders as it takes. Be in touch with someone that can actually get to the point of locking in the rate quicker than the rest, without compromising everything else that encompasses processing the loan.
As the refinance business continues to see growth, it would be wise to seek out a lender that will be able to process the application right away and not have get through other applications while you wait for a couple of weeks before they can get to it. Some customers are told to fill out the form or application on the lender's website for a mortgage refinance.
It would be wise to know the most current rate available, as some online lending sites purposely do not post the their rates just in case they should change. If it is obvious that going through the trouble of getting to a live person is not getting anywhere, take a different approach as soon as possible.
The sudden drop in rates is proof enough the mortgage finance surge has found lenders under-prepared. This heightened activity seems to be happening during a time when they could really maximize on the opportunity to make up for the losses from last year's fiasco. Short-handed lenders are having difficulties following up with prospective customers and there are warnings to expect delays in applications as understaffed lenders race to fulfill requests for mortgage refinance.
Buying mortgage-backed securities has already started to take place as of the second week in January of 2009, as the plan of action the Federal Reserve announced in November of 2008. This has spurred even more activity for the mortgage finance business, also adding to the struggle lenders are currently experiencing after the financial downturn of last year, forcing lenders to downsize.
Consumers contacting lenders for mortgage refinance have been unsuccessful in speaking to anyone directly when calling lenders and some are left with the option of leaving a message for a return call. Frustrated consumers are unable to simply leave a message as lender mailboxes and voicemail are unable to support the volume of callers.
To make up for a shortage in staff, people from other departments experienced in finance within the lending institutions have been transplanted to handle the increase in mortgage refinance. The possibility of rates going back up has created a sense of urgency and worry. As we know the history of fluctuating rates, it is possible to see change from hour to hour.
When a consumer is told it could be two weeks before they can get back to you about mortgage refinance, I believe the best advice to give in this situation would be to contact as many lenders as it takes. Be in touch with someone that can actually get to the point of locking in the rate quicker than the rest, without compromising everything else that encompasses processing the loan.
As the refinance business continues to see growth, it would be wise to seek out a lender that will be able to process the application right away and not have get through other applications while you wait for a couple of weeks before they can get to it. Some customers are told to fill out the form or application on the lender's website for a mortgage refinance.
It would be wise to know the most current rate available, as some online lending sites purposely do not post the their rates just in case they should change. If it is obvious that going through the trouble of getting to a live person is not getting anywhere, take a different approach as soon as possible.
About the Author:
This article is brought to you by the experts at EFD Commercial Investments Inc. For more free information about loan refinance,visit their Mortgage Refinance page.
posted by Debt Consolidation Loan at
1:29 PM
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