There’s a way of transferring funds that is even faster than electronic banking. It’s called “marriage”.
Since the dawn of the mortgage pipeline, probably during the Paleozoic Era, companies who are concerned about managing their risk have struggled with the issue of how best to keep it clean. Specifically, what is the best way to eliminate expired locked loans, or loans that have already closed somewhere else, in their pipeline? As anyone in Secondary knows, hedging a loan that won’t fund makes no sense whatsoever, but it is rarely a priority for agents to cancel out loans on their own. Many wholesalers have specific policies designed to limit “excess baggage”, and companies typically put in an automatic system to gradually phase out including loans that haven’t moved through the pipeline in timely manner.
The latest change comes from Wells Fargo, although they mainly address extensions. Back on 11/9 “for all loans, if you wish to extend the expiration date on a loan, you must lock the loan in order for the commitment to be extended. Wells Fargo Wholesale Lending will no longer allow the submission of updated documentation to extend the commitment on unlocked loans.