LOAN UPDATES AND DELAYS Why am I not receiving timely updates on my loan? While there are no set update timelines on any active loan file. The type of loan and challenge level directly reflects the frequency of updates. For example, most loans without underwriting challenges. You should receive updates twice weekly which will increase as the loan gets closer to the closing date. The frequency of updates varies for all other loans, but generally follow the that same timeline depending on the number of requests for additional documentation, unforeseen underwriting issues, holidays, and secondary reviews. In rare cases, the loan file may be subject to a second or third tier underwriting review for final approval. What are the primary reason for most delays? Generally speaking and depending on the loan type, can take anywhere form 12 days to 45 days or more to receive final approval from underwriting. It is important to note, that there can be a host of reasons for delays any time throughout the loan process. From the underwriting side, the most common delay is when underwriting requires additional documentation and/or requests updated documentation even after submitting documents to satisfying the initial conditional approval requirements. There also can be underwriting backlogs in reviewing files submitted. These delays can range from 2 to 4 days in addition to the standard 48 to 72 hour review period. On the borrower’s side, there could be document errors, incorrect information, missing bank statement pages, unreadable or illegible documentation, credit rating changes during the review period and not providing documents in a timely manner when requested or sometimes borrowers fail to disclose recent purchases, litigation, child support etc that don’t show up on a credit report. Needless to say, there are too many variables to list and borrowers should be prepared for the unexpected. The good news is that major delays in a loan processing is the exceptions and not the rule with most of the "issues" listed above are resolved quickly.