Hurricane Sandy Impacts Loan Pipeline

8 Nov

Mike Fratantoni, The Mortgage Bankers Association (MBA) vice president of research and economics,  gave figures for the impact week’s storm had on application volumes on the East Coast.   “Applications fell more than 60% compared to the prior week in New Jersey, almost 50% in New York and nearly 40% in Connecticut,” he said.

The decline spans refinances and purchases, according to MBA’s weekly mortgage applications survey published Wednesday.

Sandy forced shutdowns of many lenders and third party services, some of which are still not back  up to normal operations following the winter storm yesterday, having suffered power and telephone outages.  Tradition Title Agency has remained open throughout, offering assistance to lenders and clients in the storm-battered areas.

Since many borrowers’ homes are now in need of reappraising to assess the damage caused by Sandy, lenders are standing by until all disasters have been declared by the Federal Emergency Management Agency (FEMA).

The process, which lenders expect to be a long one involving contacting each borrower to schedule re-inspections.  Loans will close once appraisers visit homes and assess the damage–if any–to the properties.

Lenders and service providers are working hard to get their pipelines back on track and close loans as soon as possible.

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