We have new disclosure rules that are causing delays beyond our control, but we are aggressively addressing the issue.
New rules require that we disclose ALL fees (NOT just ours, but escrow’s and everyone else’s) in exact amounts. PROBLEM: We have to wait for Escrow to give us their exact fees. And sometimes Escrow takes more than a week to give us their fees.
PROBLEM #2: We are not allowed to order an appraisal until AFTER a buyer signs the “exact” disclosures. This results in huge appraisal delays.
SOLUTION: If we (JVM Lending) pay for the appraisal and agree to NEVER charge the borrower/buyer, we are allowed to order the appraisal right away.
But this is a problem for us not only b/c we have incurred almost $10,000 in appraisal fees over the last few weeks alone, but also b/c we end up eating the fees altogether when deals fall apart for reasons beyond our control. This happens often b/c borrowers lose their jobs, appraisals come in too low, inspections reveal too much damage, etc.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167