Closing or Not Closing? ... That is the Question!

I've noticed in the last couple of months how difficult it is to get a home closed.
It has nothing to do with my borrower or the property.  The closing date is more like a fantasy.  You have no idea when the processor at the underwriters are going to complete the file.  My last transaction took an extra 30 days to close because of several mistakes by the lender and underwriters.  The first mistake happened when the appraiser went to the wrong building in the condo community.  That little mistake put us back two weeks.  The second mistake happened when the underwriter declared that the HOA deliquency was at 105%.  At this point I began to ask myself what was going on.
Really, 105% deliquency?
Of course, the HOA deliquency was only 10% and the underwriters acknowledged the typo, but until I brought to their attention they told me that they could not do the loan for my client.
This little mistake set us back another two weeks.  Mean while the seller is wondering whether my client can really perform under the contract so we offer more earnest money to keep the deal going.  At the same time my client is wondering if the lender can do their job even though she is putting 50% down and has sterling credit and tons of income.
At first I just thought this was a file that fell through the cracks at every turn.  However, after speaking to a lot of my colleagues this is a problem that is systemic.  We are seeing a lot of delayed closings.
Why?
The answer I am receiving is that underwriters are over worked with too many files.  Granted, we are seeing a lot of first time home buyers come into the market to take advantage of the tax credit so I give them that.   But the underwriters have had my client's file for over 2 months so I'm not buying it.
The other excuse is that the underwriters and lenders are still trying to figure out how to comply with all of the new government regulations that are coming down on them.  While I can understand that there are some changes to the letter of the law shouldn't underwriters and lenders know by now what to do to make the process more smooth and less chaotic?
I am sure that in a month or two the last of the first time home buyers will have closed and we will be back to business as usual.
I certainly hope so, because sellers and buyers are frustrated right now with all of the delays and the delays are not helping the real estate business as a whole.
Until next time.
Your Realtor
Shawn Russell