I agree with you that the process is flawed and would like to see Realtors/sellers/buyers/lenders all be on the same page. But, unfortunatley you still have agents and sellers out there pressing for 10 day closes. Everyone needs to be more realistic.
There are many many different issues all covered in what seems to be a very simply question..
If there was a loan committment issued, free of any stipulations...many things can happen...You /Client can contact the Deparment of Financial institutions, and file a complaint. If there is a "committment to lend", then they have to loan the money. However, just like eveyrthing else today...if there is a situation where there is a USDA LOAN, or any other type of Government loan, and there is NO MONEY for the program or it runs out...that is another story.
Your other repsonse to this question is also a VERY good answer. MOST of the time, something is not, or was not followed in proper order, or procedure. I have not seen where an underwriter reversed their decision on somthing that they have already signed off on....However, once again...if something new comes up...that WILL cause them to Turn Down the file. Let's look at an example:
Let's say...that at the last minute...(which is normal) a VERBAL VERIFICATION of employment is performed, and the person on the line says, "oh, yes, she works here, but her last day is tomorrow"....EVEN IF she is starting a NEW JOB, the customer HAS TO GO BACK to underwriting! This will cause a delay, and could cause the loan to be turned down. Why would it be turned down you ask?? Let's say, this customer goes from working at Home Depot, to being a nurse...or, from a NURSE to being a car sales person....etc...etc..
They could go from a salary to commission, or hourly to hourly plus bonus.... no matter what way you look at it, they dont have TIME in the new position yet, so there is no TRUE way to calculate what their income, overtime, bonus, etc...might be...AND, that is only ONE reason! There are 100's!
There are also TONS of new procedures we have , and the biggest change is that WE HAVE NO CONTROL over time frames anymore! Nowhere have I seen where many people care about customer service either!
I dont that the FUNDERS understand the we as Lenders, Realtors, and buyers, must adhere to the closing date, or we are in violation of a multitude of items. The buyer has to practice due dilligenece, and provide the lender with as much documentation as is required to get the loan. On the other hand, the LENDER can only work within the parameters they are given! I could not, nor could anyone, just the comittment you are speaking about in your question without first looking at it!\
You are right tho in that I am SURE the lawsuits are just sitting back and waiting to happen!
You could fax me a copy at 608-592-2229!
Thanks so much!