Refinance Dragging - Unresponsive Lender?

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YoungSisyphus
Posts: 34
Joined: Mon Sep 24, 2018 7:35 am

Refinance Dragging - Unresponsive Lender?

Post by YoungSisyphus » Tue Mar 24, 2020 10:10 pm

Wanted to get BH opinions. When rates recently dropped I was able to refinance at 3%, down from 4.05%. All paperwork was submitted at the end of February, and officially submitted to underwriting March 9th. Since then it’s been crickets even after numerous calls. I’ve talked to the person coordinating with underwriting, as well as my initial rep. They are all saying everything is slow because of the rate decrease that everyone is refinancing.

This sounds plausible, but I’m concerned about it not getting done. Rates are higher now than when I “locked”, and there was the temporary hit to my credit that I will now be unable to go through another lender without another hit.

Anyone have any advice for me? Should I just hang tight and let them work it? Not sure I have any other options. Also not sure how they are going to even close due to the COVID lockdowns.

mega317
Posts: 3656
Joined: Tue Apr 19, 2016 10:55 am

Re: Refinance Dragging - Unresponsive Lender?

Post by mega317 » Tue Mar 24, 2020 11:53 pm

Yeah you don’t have options. You won’t get that rate anywhere now. But if you’ve talked to your people who just say it’s slow then you’re probably ok.

I was able to close after some difficulty finding a notary the day after our shelter in place order.
https://www.bogleheads.org/forum/viewtopic.php?t=6212

FunnelCakeBob
Posts: 88
Joined: Fri Jul 20, 2018 5:44 pm

Re: Refinance Dragging - Unresponsive Lender?

Post by FunnelCakeBob » Wed Mar 25, 2020 1:12 am

I echo the previous responder. Sit tight, check with your lender weekly.

Hopefully you're a long way from the expiration of the rate lock period. If the expiration date is approaching, certainly check with the lender to confirm an extension of the rate lock.

With the rush to refinance, there may be a delay in getting an appraisal as well. Many title companies are slammed too. Also keep in mind many county recorders offices are closed or thinly staffed if you live in an area impacted by the shelter-in-place. My county office is closed with essential staff working from home, and doesn't offer electronic filing. Instead there's a drop box but no guarantee when the docs will be processed.

Banks are considered essential services and remain open during the shelter-in-place. With many bank employees working from home, it places a strain on everyone and bank IT resources. Thus the backlog may move slower than usual. Keep checking weekly and good luck.

Monsterflockster
Posts: 156
Joined: Thu Nov 21, 2019 12:03 am

Re: Refinance Dragging - Unresponsive Lender?

Post by Monsterflockster » Wed Mar 25, 2020 1:17 am

YoungSisyphus wrote:
Tue Mar 24, 2020 10:10 pm
Wanted to get BH opinions. When rates recently dropped I was able to refinance at 3%, down from 4.05%. All paperwork was submitted at the end of February, and officially submitted to underwriting March 9th. Since then it’s been crickets even after numerous calls. I’ve talked to the person coordinating with underwriting, as well as my initial rep. They are all saying everything is slow because of the rate decrease that everyone is refinancing.

This sounds plausible, but I’m concerned about it not getting done. Rates are higher now than when I “locked”, and there was the temporary hit to my credit that I will now be unable to go through another lender without another hit.

Anyone have any advice for me? Should I just hang tight and let them work it? Not sure I have any other options. Also not sure how they are going to even close due to the COVID lockdowns.
I refinanced before the super low rates and it took 2.5 months. We went beyond the lick but was a nonissue as paperwork was being processed. I can only imagine what it’s like now.

As others suggested... Keep checking in weekly and stay with it.

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