A mortgage firm out of the Midwest is so confident about its ability to close a loan that it is providing a guarantee of more than $6,000 if it misses the closing.
In its Origination Insight Report December 2015,
Ellie Mae Inc. said that 67 percent of loan applications started in the previous 90-day cycle had closed.
In some months during the past three years the closing rate has fallen below 52 percent, according to historical data from the mortgage technology provider.
But potential fallout of as much as nearly half hasn’t scared off
Marketplace Home Mortgage.
On Thursday, the
Edina, Minnesota-based firm announced that it is providing a guarantee for loans that don’t close on time.
According to Marketplace, it has gone live with an on-time closing guarantee that compensates the buyer and the seller when the
mortgage closing doesn’t occur by the scheduled home closing date.
The company, which has 116 sponsored mortgage loan originators registered on the Nationwide Mortgage Licensing System & Registry, said its customers are eligible for a one-time mortgage payment of up to $1,500 when the closing date is missed.
In addition, Marketplace said the seller will be eligible to receive a $5,000 benefit.
“The last thing we want is for a client to have all their belongings in the moving truck and not be able to move into their new home,” Greg Ettinger, chief development officer of the 20-year-old organization, said in the announcement. “This ensures that customers will feel secure in knowing Marketplace Home Mortgage is working hard so they can move into their new home on time.”
