Below are 5 specific reasons:
-A glut of forms to be completed. Each loan servicer utilizes its own set of forms, in addition to Fannie Mae and Freddie Mac.
-Inexperienced personnel. Loan servicers are hiring additional staff as swiftly as possible and in turn have more inexperienced personnel on staff than experienced.
-Ongoing use of fax machines. Many loan servicers continue to require that forms be faxed in to their offices. This practice is seen as outdated and impractical given the advances of online form submission which are used in many other industries.
-Procedures which are overly complicated. There are borrowers out there which have received offers of loan modifications in the mail without even applying, yet the forms are some wordy and complicated, many of the offers wind up in the trash.
-Old information. Many applicants find themselves back at the starting line by the time they get around to actually faxing in their applications, finding out that one or more of the necessary forms have been changed.
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