Forget jetpacks, we need to figure this out

Some of the largest lenders claim they can close a loan in as few as 15 days, but across the industry, the average is three times that.

Was this newsletter forwarded to you? Sign up here. Good afternoon —   Time to close is a key metric for mortgage lenders. There are only so many days in a month, quarter or year, and speeding up time to close means you can squeeze more loans into those timeframes. Every day counts.   Which is why it's crazy to me that in April the average time to close was 51 days, according to ICE Mortgage Technology. And that's after dropping four straight months from a high of 58 days in December.   We've been covering time-to-close data since I joined HousingWire in 2013 (when it was Ellie Mae's report). At that time, the mortgage process was bogged down with compliance issues as lenders were trying to figure out how to fulfill the Dodd-Frank requirements and still make money. The answer, it seemed, would be found in technology.   Except, over the last seven-and-a-half years, time to close has stubbornly stayed roughly the same. Consider the average over this timeframe:   2013: 46 days 2014: 40 days 2015: 45 days 2016: 47 days 2017: 44 days 2018: 43 days 2019: 43 days 2020: 48 days 2021: 53.5 (so far)   How can this be? Fintech solutions are literally everywhere. From taking an application, verifying income and employment, underwriting, title and close, mortgage insurance — you name it, there is a tech product focused on making it easier and faster. Of course, some of the largest lenders claim they can close a loan in as few as 15 days, but across the industry, the average is three times that.    The numbers for 2020 are likely to be skewed by pandemic conditions — conditions that are still affecting mortgage processes this year. But still. Forget all the Jetson-type innovations we expected by 2021 — I want to know why we can't seem to get time to close below 40 days. Share your thoughts with me at swheeler@housingwire.com   Until tomorrow —   Sarah Wheeler HousingWire Editor in Chief. HomeServices of America CEO on why he's shifting strategy    In this crossover episode, Gino Blefari, CEO of HomeServices of America and chairman of Berkshire Hathaway HomeServices, discusses how HomeServices is making a strategy shift away from its typical low profile. Listen now Low inventory stifles April's pending home sales    Like new and existing sales, pending home sales felt the strain of exhausted home inventory in April ― dropping 4.4% from the previous month, according to NAR. Consumer Research: The Mortgage Experience Borrowers Expect Two white papers explore how lenders can modernize appraisal and closing for a better borrower experience. Using survey data from 1,500 consumers who recently interacted with the mortgage process, they provide actionable recommendations for today's lenders. Download the white papers. Sponsored by ServiceLink Mortgage rates drop below 3% again    Mortgage rates fluctuated again last week, back down 5 basis points to 2.95% after managing to pop back up to 3% the week prior, according to Thursday data from Freddie Mac's PMMS. Why lenders need to revisit their quality control   As lenders adjust to evolving risk perspectives and perhaps even enhanced compliance regulations, they need to be able to react in real time and make the necessary changes quickly. Leveraging technology can help. Presented by DataVerify HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039, (469) 893-1480 Unsubscribe Manage preferences

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