More folks Turn To Big Banks For Mortgages

October 12th, 2009 | Category: Lenders

I was talking with a loan officer that I used to work with at another company that week – he now works for Bank of America in the signal center. He said that they are busier than ever and it isn’t strange for BofA to mandate that he works overtime, on weekends, etc. considering the phone seems to never stop ringing.

He next mentioned to me that the turn date to get a loan there was about 120 days.

WHAT?

It doesn’t manufacture any sense to me, but it must manufacture sense to a lot of citizens. shout into a bigger lender and wait for months to get your loan done or go with a local, smaller lender and get your loan done in less than 30 days.

And probably end up with about the same chance of

getting about the same rate and at least an “average” loan officer.

While I was still thinking about the 120-day-turn-time, I next came across something from TheTruthAboutMortgage.com that said the top 2 lenders in the first half of 2009 (Wells Fargo and Bank of America) accounted for nearly half of the total mortgage production and that “Year by year, Wells Fargo saw loan fundings climb an impressive 63 percent, while Bank of America saw a 40 percent rise“.

No wonder my friend is busier than ever — for whatever reason, it appears clear that consumers are choosing to steer their business towards the larger banks who are still ramping up to try to accommodate the demand.

And it appears that they don’t mind waiting 120 days to get a loan done.

Orginal post by Justin McHood

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.