We recently closed a loan with a major NY lender. Since the property was a condominum apartment building, the bank required that the condominium itself be approved by them. Despite sending in all approval documents in mid July, and having all conditions cleared other than the condominium approval, the bank did not clear the condominium. The only open item was review of the condominium insurance coverage. Though we submitted this to them 5 or 6 times in various formats (email, fax, uploads), we could not get the bank’s condominium department to review this. The bank even told us that we should not send this to them more than once since it “confuses” them! Weeks passed, as did the borrower’s closing date while our processor and I had numerous phone calls and emails with the lender’s processor, our account representative, etc. All to no avail. Finally, 3 weeks later, when our borrower was just about in default under his contract, the bank approved the insurance with no problem, question or explanation as to the delay. The loan then closed a few days later. Notwithstanding this, and the fact that I was able to get the bank to lower the rate for the borrower, our 2 months of good service on this loan was washed away by the actions of this lender. So much so that my post-closing “How did it go/good luck email” to the borrower was not responded to for the first time in recent memory!
Condo Approvals Take Too Long