The lending division of Carrington Mortgage Services is offering 25-day loan closings to borrowers looking to purchase or refinance a home — and it’s prepared to put its money where its mouth is.
The division is the residential wholesale and retail loan origination arm of Santa Ana, Calif.-based Carrington Holding Company LLC, and originates loans in 40 states and Washington, D.C.
Citing Ellie Mae data, Carrington noted that purchase loans closed in an average of 46 days last year, while refinance loans closed in an average 49 days. In a new program announced today, the company pledges to cut that time nearly in half to 25 calendar days from the time a file is submitted to underwriting to the time the loan funds — or give borrowers a closing cost credit of $500 applied to the loan once it closes.
"Carrington’s 25-day closing program provides borrowers a shorter, more predictable timeline during what can often be a stressful waiting period, and offers them a competitive edge in a tight market by giving them the ability to get a loan more quickly than other potential homebuyers," the company said.
"The advantages of expedited processing also extend to real estate agents, who sometimes lose sales when homebuyers can’t secure financing in a timely manner."
The new program will be available through Carrington’s 30 retail locations and its centralized loan originations unit. Some products, including brokered loans, jumbo loans and FHA 203(k) loans (used to buy and repair homes), are excluded from the program.
In a statement, Ray Brousseau, executive vice president of Carrington Mortgage Services’ mortgage lending division, said the 25-day offer was possible due to "refinements we’ve made in our operational processes, staffing and management over the past year."
Last month, the lending division of Carrington Mortgage Services opened two operations centers in Indiana and Connecticut in order to expand the company’s underwriting and processing functions in the East Coast, including speeding up turnaround times for loans and enhancing real-time service offerings.