Carrington Mortgage Services LLC has announced plans to extend its retail operation’s 25-Day Loan Closing program, which offers expedited loan closings to borrowers seeking to purchase or refinance properties. Under the terms of this program, which is designed to cut closing times by almost 50 percent compared to the industry averages cited in Ellie Mae’s February 2013 Origination Insight Report dated March 20, 2013, Carrington commits to process any qualifying loan from the time that a file is submitted to underwriting to the time that it funds within 25 calendar days, or the company will apply a closing cost credit of $500 to the loan once the loan closes.
Since Carrington’s 25-Day Loan Closing program was initiated in February, the company has seen a marked increase in its number of loan applications received: A month-over-month increase of 27 percent from February to March, contributing to a 28 percent combined monthly increase from January through the end of March of 2013. Another measure of the program’s success is the related reduction in average closing timelines to well below 25 days. For the past two months, Carrington’s retail lending division has been closing most loans qualifying for this program within 15 days.
In 2012, the mortgage industry’s average time to close a purchase loan was 46 days, while the average time to close a refinance loan was 49 days according to an Ellie Mae Origination Insight Report. In many cases, processing can take much longer—sometimes as long as 60-90 days. Carrington’s 25-day closing program provides borrowers a shorter, more predictable timeline during what can often be a stressful waiting period, and offers them a competitive edge in a tight market by giving them the ability to get a loan closed more quickly than other potential homebuyers. The advantages of expedited processing also extend to real estate agents, who sometimes lose sales when homebuyers can’t secure financing in a timely manner.
“We’re proud of the successes realized through our 25-Day Loan Closing program, both in terms of meeting an obvious need within the market for expedited closings and pushing us to cut our processing times even further,” said Ray Brousseau, executive vice president of Carrington Mortgage Services LLC’s Mortgage Lending Division. “By redefining the way we do business, challenging the industry norm and striving for continuous improvement, Carrington is the go-to lender for borrowers and agents looking to close quality loans more quickly.”