Across the nation streets are quiet and in some places empty. With COVID-19 forcing most folks (except for essential workers) to quarantine, the mortgage industry is bracing itself for a quiet spring buying season. Finding a brokerage that isn't operating fully remote is difficult and as for open houses, those are likely to be held off for quite some time.
"The machine is being overwhelmed at this point," said Bob Jennings, the CEO of ClosingCorp, a tech platform involved in a third of the country’s home-loan applications, according to The New York Times.
The report revealed that the current state of the nation couldn't have come at a worse time in the industry. The spikes in mortgage applications, especially from those looking to refinance, now have closings scheduled, though, being advised to stay home could make it hard to complete those closings.
"A lack of staff doesn’t totally derail business. About 2,100 of the 3,600 offices allow electronic filings. But a human being ultimately has to process those filings, known as e-recordings," according to the report.
"'So if no one’s there, the pipeline is still blocked at the end,' said Steve Gottheim, a senior counsel with the title association, which is urging officials to leave at least skeleton crews in the offices."
It also notes that if a deed isn't recorded in a timely fashion, lenders may start to worry about the potential for fraud. To learn more about why the COVID-19 crisis continues to complicate things in the mortgage industry, click here.