Pre-Approval limited further still with one lender via total elimination.
On Friday August 1st we received notice from a major lender stating that they would no longer be processing Pre Approvals even as simple rate-holds.
On June 7th I wrote a brief note about a Major Chartered Bank no longer fully reviewing Pre-Approvals, essentially reducing the time and effort put into pre-approving clients to a basic ratehold. Still something of value to be sure, but not what it once was. This latest news is a step beyond that, a big step.
Although to be fair a Pre Approval was not really worth the paper it was printed on beyond locking down a rate for 90-120 days with the majority of lenders for some time. Something touched on previously.
However at this point we have one less lender to secure rates with, which when rates start to takes further steps upward will be a bigger issue still.
Will other lenders follow suit in the name of efficiency or due to source of funding challenges? On Friday I might have said ‘not likely’. However with todays headline regarding the Fed restricting conversion of mortgages into CMHC guaranteed securities this could be the start of a new trend.
Yet another challenge for us to be aware of.