Friday, January 23, 2009

Lender Shopping: Multiple Applications on Rise

LenderA flood of borrowers are applying to more than one lender in hopes of refinancing into a mortgage with record low interest rates. Many applicants are having trouble refinancing, however, because lenders have toughened their underwriting criteria and also are swamped with applications that have overwhelmed their downsized staffs. Fannie Mae chief economist Doug Duncan says anecdotal evidence shows that about half of refinancing applicants are getting approved, down from 60 to 70 percent during previous refinancing booms.

Source: The Washington Post, Dina ElBoghdady (01/16/09)