Lenders are showing signs of increased concern over the impact lengthy turnaround times are having on real estate transactions, according to a survey conducted by Williston Financial Group (WFG), a provider of title insurance and real estate settlement services.
Conducted in June and July of this year, the survey asked mortgage lending executives from community banks, credit unions, bank and non-bank lenders, as well as members of the WFG Executive Roundtable to identify the biggest operational challenges facing the industry.
A list was provided, along with a free-form fill-in option, from which they were to select the top three operational challenges they feel are most severe.
Topping the list was “turnaround times,” which 56% of respondents selected. In WFG’s first survey, taken in fall 2020, only a quarter of those surveyed chose turnaround times as a major challenge.
The other most concerning operational challenges were:
- Operational capacity, volume and staffing (34%), tied with technology implementation and integration (34%)
- Communication (31%)
- Training and time management (both at 19%)
- Process improvement/QC/errors & delays (16%).
Regarding title and settlement, the concerns identified by those surveyed were:
- Turnaround times (41%)
- Communication (34%)
- Data accuracy & quality (25%)
- Process improvement/QC/errors & delays and customer service (both at 22%)
“This feedback from the industry is leveraged to help us develop products and services that align with, and help solve these challenges for WFG’s mortgage-lending partners,” said Dan Bailey, SVP of WFG’s enterprise solutions and lender services divisions.
Additionally, the decline in mortgage rates contributed to a $1,700 increase in house-buying power in August.
The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report coming out soon.