I recently wrote blog article (Conventional versus My Community Mortgage) that exhibited the great features of a My Community Mortgage ("MCM"). I am firm believer of the MCM program (and still am) since it does have features that are more flexible! First time home buyers really liked the benefits of this program and it allowed many to first time home buyers to garner the American dream.
Well, we get the email today --- 6% Sellers Concessions No Longer for 100% LTV MCM with our favorite mortgage lender! The lender also discussed the implementation of the LLPA's! RATS!!!
There you have it! My favorite lender finally closed the door to 6% sellers' concessions on 100% LTV on MCM deals. For some of 
us, this was sometimes the make it or break it solution for someone who "could" versus someone who "could not." It was also an answer to sometimes that extra something that buyers used that "could" make the deal possible and "could not" be passed up. For sellers, it was the part of the deal that could make someone on the edge to make the offer and sell without further delay in haggling over price!
Remember way back when...well, not that long....
Not sure about you, but I vividly recall my first home purchase. Over ten years ago, I contributed a total of 4% of the purchase price, including down payment and closing costs, the tax escrows were modest and the transfer tax was lower that what it is now! I did 100% financing and was able to afford the payment!! It was not an FHA loan!!
So, does this signal the end of MCM? Could or could not? Is a transaction with concessions no longer going to happen? Could or could not?
Well, I believe the flexible features of MCM will exist, but, over time, and soon, we will continue to see and erosion of MCM features and more of a move in lending standards towards conventional lending standards, and FHA lbeing the standard vehicle (preferred) for first time home buyers who seek high LTV's.
Michael Sally
Victory Lending Group
http://www.mortgagesbymike.com or http://www.michaelsally.com
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Michael, you make some good points, but I still firmly believe that FHA was even better before the MCM. Why? Ask yourself this, typically, what was the ending sales price in regards to the asking price on these loans of yours? Give me the answer and I will explain what I am talking about. thanks, jeff