The refinance boom is great for business, however, keeping up with the demand is still a challenge for many mortgage lenders. As a sure drop in mortgage rates could be on the way, lenders are trying to figure out the best way to deal with the influx of refinance demands.
"Some banks have shifted employees to help process a backlog of loan applications," according to American Banker.
"These workers will have to reverify income and employment during a time when many borrowers are no longer working. Others must handle a deluge of calls from panicked customers asking for forbearance on their current loans."
Though, Ted Tozer, a senior fellow at the Milken Institute and former president of Ginnie Mae told the publication that it will take more than moving bodies around to remedy this situation.
"It’s not only crazy as far as staffing, but what makes this very difficult is that lenders have to go back and revalidate every loan they have in their pipeline. The question also is how much of this they can do remotely and whether there is any slack to move to servicing," said Tozer, according to the report.
The report revealed that mortgage refinance applications make up 75% of all mortgage applications and has not shown signs of letting up any time soon.
To learn more about the struggles that lenders are facing during the high demand for mortgage refinances, click here.