Even though Senate Bill 1167 has not yet taken effect, the writing is on the wall. I just got a copy of an email one major lender sent out to its broker/correspondent partners regarding Illinois loans:
"Due to the SB1167 legislation, XXXXXX will no [sic] fund any stated income loans as of June 1st, 2008. This includes our Agency Express SIVA program, FHA Streamlines with no credit qualifying, AND full doc conforming loans (both DO and LP) where only a verbal VOE is requested. For conforming loans, we can still do them, but the income will be traditionally qualified with a pay stub and two years W2s." Emphasis added.
This is only one lender's reaction to the new legislation -- no doubt others may take different positions regarding their approach to SB 1167. It's definitely interesting to see how cautious one's approach can be. Comments anyone?