Skip to main content

Survey Finds Realtor Dissatisfaction With Lenders

NationalMortgageProfessional.com
Aug 03, 2011

More Realtors characterized closing short sale transactions as “difficult” or “extremely difficult” than late last year, indicating that lenders’ and servicers’ short sale procedures have shown little improvement in the past six months, according to the latest Lender Satisfaction Survey conducted by the California Association of Realtors (CAR). Seventy-seven percent of respondents reported closing short sale transactions as “difficult” or “extremely difficult,” up from 70 percent in December, according to the survey. The survey, a follow-up to a survey conducted in December 2010, gauges Realtors' experiences working with lenders in their most recent transaction. The majority of those surveyed dealt with short sale transactions. The survey was conducted in June 2011 to gauge Realtors' experience in working with lenders or servicers during their most recent transaction, the majority of which were short sales. Most of the Realtors surveyed dealt with Bank of America, Wells Fargo, and JP Morgan Chase in their most recent transaction. The latest survey findings show that the situation has not materially improved in the six months since CAR first surveyed its members. “Despite promises by lenders to improve their short-sale processes, clearly, they are not doing enough,” said CAR President Beth L. Peerce. “Instead of helping struggling homeowners who need to sell and willing home buyers who want to buy, lenders have created man-made roadblocks that have caused real estate gridlock and hindered a desperately needed housing recovery.” Realtors continued to cite communication issues as the most frequent obstacles in working with lenders and servicers during the short sale process. These communication issues include lenders’ slow response time to a short sale package (cited by 66 percent of Realtors), poor communication with lender representatives (cited by 55 percent of Realtors), and repeated requests for documentation (cited by 51 percent of Realtors). More than 15 percent of Realtors indicated that the lender foreclosed on the home before the short-sale transaction could be completed. Sixty-seven percent of Realtors said it took more than 60 days for lenders or servicers to return a written response on the approval or disapproval of the short sale agreement submitted. Additionally, 43 percent of Realtors said it took the lender more than five days to return any form of communication. Less than 20 percent said lenders responded “within one business day” or less. Overall satisfaction with the lenders Realtors worked with in their most recent short sale transaction remained extremely poor, with 75 percent saying they were “not satisfied” or “not at all satisfied,” up from 67 percent in December. Moreover, nearly eight in 10 Realtors (78 percent) said they were “not likely” or “not at all likely” to refer buyers to the lender for future home purchases. “With short sales accounting for a fifth of all transactions in California, it’s crucial that lenders improve their short sale process so that a meaningful recovery in the housing market and overall economy can occur,” said Peerce.
Fifth Third Bank Expands Down Payment Assistance Program

The program will provide up to $3,600 towards a down payment for families with low to moderate income.

Industry News
Jun 09, 2021
Filo Mortgage Launches Low-Rate Guarantee

National mortgage lender Filo Mortgage is offering to beat competitors' pricing by $1,000 with its Low-Rate Guarantee.

Industry News
Jun 08, 2021
FAU Index Shows Where Consumers Should Buy Or Rent

Consumers are better off renting in cities like Dallas, Texas

Industry News
Jun 07, 2021
Verus Title Inc. Expands Into Dallas-Fort Worth Texas

Verus plans to take advantage of the Dallas-Fort Worth market before expanding throughout the state.

Community
Jun 07, 2021
Freddie Mac Multifamily Extends Forbearance Deadline To September

Freddie Mac Multifamily extended the deadline for requesting a new COVID-19 forbearance agreement for its Multifamily loans to September 30, 2021.

Industry News
Jun 04, 2021
Fannie Mae Launches 'Your Own Story' To Educate Future Homebuyers

Fannie Mae is seeking to help demystify the homebuying process for future homeowners with “Your Own Story.” A new campaign to educate future homebuyers on the entire process.

Industry News
Jun 04, 2021