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Hi, my wife and I have been in the process of buying a house for months now. We we’re preapproved and everything that goes along with it, but now we’re stuck. The mortgage is approved and is in “underwriting/ctc review” (whatever that means), but it’s been in that stage for months!!! Our mortgage guy blames FHA… They keep giving us closing dates but every time the day before they notify us it’s been pushed back to an indefinate date/time. Then they set a new day for about a week down the road and then it happens all over again! This has happened 6 times now. My wife ran into a lady who just retired as a mortgage broker and she said there is regulation/law that gives time restraints on this subject and that if they take too awfully long then we would have a successful lawsuit… Can anybody advise where I can find this law/regulation?

Notes: Our credit is good & our finances are good. We just need help! Even the seller, the seller’s realtor, and our realtor is getting pissed of (not at us, but at the situation). Both realtor’s say they’ve never seen anything like this before! Also, every 30 days our mortgage guy “has to” run a new credit check on us, and for some reason the credit company’s reduce my credit score every time my credit is ran, this has significantly hurt my credit.

3 Thoughts on FHA Mortgage timeline laws?
  1. Rob
    February 2, 2014 at 1:07 pm

    as far as i’ve seen is no “laws” on how
    fast they must finish it.
    however haven’t ever had a house take
    more than 90 days.

    i would not bother with a lawsuit as that
    takes time 3-5yrs and $ $ $ $ $ $ .

    would find other ways to buy or not to buy.
    surprised seller has waited this long.

  2. Rick
    February 2, 2014 at 1:12 pm

    “underwriting/ctc review”” – It means that all the documentation, etc is sent for review to make a final determination that it is indeed safe to lend a very large amount of money to you. They stand to lose A LOT of money if you default, so they are careful.

    I do not know of a law that states they must do it quicker. Try asking your real estate agent.

  3. Lisa
    February 2, 2014 at 1:32 pm

    I have never seen a FHA loan take so long in limbo.

    underwriting/ctc review: (ctc = clear to close) this is the step in which the bank has reviewed your file and need documents from you to satisfy their conditions so they can proceed to closing.

    Personally I think the loan officer messed up and is now trying to cover for it. If it truly was the banks fault usually they will admit it and expedite your file because it’s a purchase it should be pushed through more quickly.

    With the new lender guidelines there are extra steps that need to be taken and waiting periods but you can still close an FHA or Conventional purchase in 30 days. Sometimes 45 depending on how busy they are.

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