Borrowers with FICO's under 680 will get hit with huge price adjustments.
We can still honor the old pricing through 12/31/07.
PLEASE URGE YOUR BORROWERS WITH WEAK CREDIT TO LOCK IN NOW!
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In response to market conditions, Fannie Mae issued Announcement 07-16, implementing new loan-level price adjustments (LLPAs) that will affect all agency-eligible mortgage loans with the following risk characteristics:
- Certain LTV/FICO Score combinations
- Subordinate financing with certain LTVs/CLTVs/FICO Score combinations for both fully amortizing and interest-only loans
- Two-unit properties
The new adjustments below will be effective with all loans locked on or after Wednesday, December 12th, 2007. Please review your pipeline today for any agency-eligible loans with these risk characteristics and lock accordingly.
Adjustment Description | New Adjustment |
LTV > 70% With Fico < 620 (Or Missing Credit Score) | -2.000 |
LTV > 70% With Fico 620-639 | -1.750 |
LTV > 70% With Fico 640-659 | -1.250 |
LTV > 70% With Fico 660-679 | -0.750 |
2 Units With LTVs > 75% | -0.500 |
Non-Interest Only With Sub-Financing, LTV > 65%, CLTV 90.01-95% | -0.250 |
Non-Interest Only With Sub-Financing, LTV 75.01-90%, CLTV 75.01-90%, Fico < 720 | -0.250 |
Interest Only With Sub-Financing, LTV > 65%, CLTV 90.01-95%, Fico < 720 | -0.500 |
Interest Only With Sub-Financing, LTV > 65%, CLTV 90.01-95%, Fico >= 720 | -0.250 |
Interest Only With Sub-Financing, LTV 75.01-90%, CLTV 75.01-90%, Fico < 720 | -0.500 |
Interest Only With Sub-Financing, LTV 75.01-90%, CLTV 75.01-90%, Fico >= 720 | -0.250 |
BRAVE NEW WORLD
STEPHEN KATZ
KATZ MORTGAGE TEAM
866-742-8400
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