Updates- Important!.
ELIMINATION OF THE FREDDIE MAC 100 LOAN PROGRAM Effective for Locks on or after Monday, March 17, 2008
In response to the continued deterioration of credit quality and declining home values in most areas of the country, Freddie Mac is eliminating the higher risk Freddie Mac 100 loan program. As a result of this change, effective for locks on or after Monday, March 17, 2008, the Freddie Mac 100 loan program is being eliminated. All loans that are locked PRIOR to March 17, 2008 will be honored; however, these loans must be closed and funded by May 15, 2008. Lock-in extensions and re-locks will NOT be granted. PLEASE NOTE THE FNMA FLEX 100% & MY COMMUNITY PROGRAMS ARE STILL AVAILABLE
IMPORTANT INFORMATION REGARDING UPCOMING AGENCY UPDATES Revised Minimum Credit Score Requirements and Cash-Out Refinance Eligibility for Transactions Requiring Mortgage Insurance
Due to continued mortgage insurance (MI) company product eligibility pull backs, we must implement the new minimum credit score requirements and cash-out refinance eligibility changes outlined below for our conventional Agency loan programs. These changes will be effective for locks on or after Friday, March 14, 2008. All loans that are locked PRIOR to March 14, 2008 will be honored; however, must be closed and funded by their original lock expiration dates. Lock-in extensions and re-locks will NOT be granted.
· For ALL traditionally underwritten, DU Approve/Eligible and LP Accept/Eligible Agency loan transactions:
· a minimum 620 credit score (for ALL borrowers) will be required for LTVs 80.01-95%, regardless of the AUS approval, and
· a minimum 680 credit score (for ALL borrowers) will be required for LTVs 95.01-100%, regardless of the AUS approval.-- THIS INCLUDES FNMA MY COMMUNITY & FLEX 97% & 100% PROGRAMS
· The maximum LTV on 1 unit second home cash-out refinance transactions will be reduced to 80%. Maximum allowable TLTVs remain unchanged.
Note: Although locks will be accepted through end of business March 13, 2008, the MI commitment MUST be obtained in accordance with the MI companies effective dates as outlined on the Competitive Analysis of MI Guidelines Matrix. MI coverage will NOT be available after these effective dates, regardless of when the loan was locked.
At this time, all other minimum credit score requirements (i.e., for LTVs 80% or less, etc.) remain unchanged.
LOCK CUT OFF TIMES NOW IMPLEMENTED FOR ALL COMBO 2ND MORTGAGE
All combo 2nd mortgages now must be locked in no later than close of business day on Wednesday, March 12th. These locks will be honored, however, must be closed and funded no later than March 31, 2008. THE FLEX EQUITY LINE PROGRAM IS NOT AFFECTED BY THESE COMBO 2ND CHANGES.
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