The Wholesale Lending Division of Carrington Mortgage Services LLC has announced it is expanding its successful 30-day Purchase Promise Program to include a 21-day loan closing program for borrowers looking to purchase properties. The program, designed to significantly reduce closing times compared to industry averages, applies to FHA and conventional purchase loans. The new 21-day program also offers expanded guidelines for eligibility, including wider qualifications and fewer restrictions.
The 21-day program requires a complete credit file, including the appraisal, made possible through Carrington's exclusive “Compliance Only Registration” process. For loans that do not meet the 21 day program guidelines, Carrington’s 30-day Purchase Promise Program will remain in effect. Carrington commits to process any qualifying loan from the time that a complete file is submitted to underwriting to the time that it funds within 21 or 30 calendar days, depending on eligibility, or the company will apply a $995 closing credit to the loan at the time of closing.
Expanded guidelines for loans eligible for both programs include: an FHA FICO restriction of 600 or greater (reduced from the previous restriction of 640); additional eligibility for conventional loans with a FICO of 620 or greater (reduced from 700); an LTV less than or equal to 95 percent (previously 80 percent) with a FICO of 680 (reduced from 700); and conventional loans now allowing for NOO and second home purchases.
“Our new 21-day loan closing program will put our brokers in a position of competitive advantage in today’s hyper-competitive mortgage market,” said Ray Brousseau, executive vice president of Carrington Mortgage Services, LLC’s Mortgage Lending Division. “This program will allow mortgage brokers to provide loans to more borrowers, more quickly than any competitive program we’re aware of – another example of our commitment to the wholesale channel.”
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 longer – up to 60-90 days. Carrington’s 21 and 30-day closing programs provide consumers, brokers and their realtor partners a shorter, more predictable timeline to secure financing, giving them a competitive edge in a tight market. Expedited processing allows brokers to be compensated faster and helps alleviate concern among real estate agents over sales lost due to a homebuyer’s inability to close in a timely manner.
The enhanced Purchase Promise Program compliments Carrington’s recent guideline changes to expand lending opportunities for consumers including adding the manufactured housing property type as an eligible property for FHA/VA loan programs, no overlays for FHA first time home buyer loans, and the addition of non-traditional credit guidelines for FHA borrowers who may have limited or insufficient credit.