Last Friday Countrywide changed their conforming Fast & Easy, limiting it to 90% LTV and 80% CLTV where subordinate financing is used, and entirely eliminated their Equity Programs and House America program.
Last week California’s Attorney General shut down four mortgage lenders for providing what he characterized as “illegal and unconscionable loans”: Lifetime Financial, Nations Mortgage, Greenleaf Lending, Virtual Escrow, Olympic Escrow and Direct Credit Solutions were shuttered for engaging in what Brown characterized as a “complex scheme” of bait and switch.
If you want to sell a super-sized FHA loan to Wells, Purchase, Rate-term refinance, and cash out refinance with loan amounts $417,001 - $650,000 will need a FICO score of 660, and for Purchase, Rate-term refinance, and cash out refinance with loan amounts above $650k you’ll need a 680. They’re limiting their LTV’s for Purchase and Rate-term refinances at 98.75%, but Cash-out refinances at 85%. No Down Payment Assistance Programs are allowed, and a 5% reduction to LTV/CLTV in any market identified as declining by Wells Fargo or the appraiser.
Effective March 31, Indymac will discontinue accepting e-MITS submissions and rate locks for all non-Financial Institution Sellers participating under Preferred
Delegated Underwriting (“PDU”) Authority. IMB will honor program eligible loans closed by Non-Financial Institution Sellers (i.e. Mortgage Bankers) under their respective PDU authority limits provided said eligible loans are submitted in e-MITS and rate locked on or prior to March 28, 2008. They are also capping the commitment period that may be taken to 30 days as of March 28.
Flagstar, in compliance with mortgage insurance vendor guidelines, will no longer offer any loan programs with 100% loan-to-value (LTV) starting next Monday. In order to ensure adequate time for mortgage insurance certificates to be issued, all loans with an LTV greater than 97% must be received in Underwriting by this Friday. This impacts their Flexible 100 and Flexible with Subordinate Financing, MyCommunityMortgage, Freddie Mac 100 & Freddie Mac 80/20, Freddie Mac Home Possible, and Flagstar Affordable programs.
In addition, next Monday Flagstar will no longer offer any Stated Income Verified Asset (SIVA) or Jumbo Asset Based Stated Income loans with an LTV greater than 80%. This includes their Conforming Low Doc and Jumbo Fixed & ARM programs. Lastly, next Monday Flagstar “suspends” their Conforming Stated Income Stated Asset (SISA) Program.
www.JasonWheelersLoans.com & Real Estate Investing Education
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