The average time it takes for loan to be approved in 2009 47 days. That number is up from an average of 30 days in 2008. Customers are less satisfied with their mortgage service because of the extra time it takes for loan approval.
The extra time it takes to get loans approved is due to the fact that there is more scrutiny on loan files. Investors that buy the bundles of mortgage loans want reassurance that the homes and buyers are a safe investment, especially after the crash! The underwriters that review the loan files look for issues that identify a buyer that can not make their payment or a house that is defective. If the underwriter sees any problems, they will kill the loan and the purchase will not happen.
Another reason loans are taking so long to fund is because interest rates are at record lows, and so the shear volume of people refinancing is huge.
