Major Changes with Countrywide...

By
Real Estate Agent with Real Living HER

The information below was obtained by a loan officer with Countrywide Bank FSB.  It is a list of the major changes that they are making on Conventional Loans both conforming and non-conforming in the Central Ohio Area.  The source was unable to say whether or not Countrywide will be implementing these new guidelines throughout all their service areas but since our market has been tagged as "restricted" and or "soft" these changes will go into effect for all loans locked after March 19th, 2009


1)        Minimum credit scores now with loans over 80% loan to value will be 700 and no              longer 620


2)        2nd homes  will now require 20% down on conforming loans


3)        Debt Ratio's - MAXIMUM is 41% for loans over 80%, regardless of Automated Underwriting system and MI
companies will NOT insure them so they have to be at 41% even or below

4)        Reserves -  minimum 2 months of reserves are now required and can be more based on the Automated Underwriting System


5)        Cash out refinances - MAXIMUM is 80% cash out and loans that were done originally as 80-15-5 or
80-10-10 where the borrower wants to refinance both loans into 1, that is considered  'CASH OUT' and maximum is 80% loan to value

6)        CONDO'S -  MINIMUM 15% DOWN WITH SCORES OVER 700 & CONDO HAS TO BE FNMA ELIGIBLE


7)        Interest Only Loans- Maximum financing is 80%


For awhile treated like the ugly duckling this is going to make FHA EVEN MORE ATTRACTIVE AND ELIGIBLE FOR BORROWERS OVER 80% LTV WITH SCORES UNDER 700..

It will be interesting to keep watch to see if others follow suit with Countrywide..

For more information on Central Ohio Market Conditions see:  Should I Stay or Should I GO?

If you are looking to purchase or sell a home in the Central Ohio Area please give me a call at 614-273-6406 or email me at
Vanessa.simmons@realliving.com

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Tags:
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Rainmaker
3,267,052
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

There are some major changes I would like to see for Countrywide...the first would be extinction...Good to talk with you last weekend....how is the plan we discussed working ?

Mar 05, 2009 10:25 PM #1
Rainmaker
43,289
Vanessa V. Simmons
Real Living HER - Columbus, OH
Realtor

Sally you are wonderful.  I cannot thank you enough for your time.  I am working on my plan and will report back to you my successes.  Say hello to David and I could not agree with you more on Countrywide....

Mar 05, 2009 10:31 PM #2
Ambassador
920,196
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

I had a buyer call me yesterday, she wanted to purchase but had a credit score of 519. She called many lenders and was told they could not qualify her at this time.

She called Country Wide.

Oh they said they would, new programs, blah, blah, blah.

Then she read my articles I have been posting on the Stimulus, 8000.00 First Time Home-Buyer credit.

I had my lender call her.

IMO Country Wide lied to her.

Mar 05, 2009 11:22 PM #3
Rainmaker
43,289
Vanessa V. Simmons
Real Living HER - Columbus, OH
Realtor

Here in my area I have not seen country offer any programs that could be used by anyone with a score under 620 in a very long time.  That is pretty much true for most lenders right now.  If you know someone who can work with a 519 please let me know.

thanks

Mar 05, 2009 11:36 PM #4
Rainmaker
301,963
Dan and Amy Schuman
Howard Hanna Real Estate Services - Solon, OH
Luxury Home Specialists

With all the problems Coutrywide has been having, I'm surprised they waiting this long to make some serious changes. Thanks for the information Vanessa and hope all is well in Central Ohio.

Mar 05, 2009 11:44 PM #5
Rainmaker
43,289
Vanessa V. Simmons
Real Living HER - Columbus, OH
Realtor

Dan and Amy thanks for stopping by and your comments.  I guess it is over due with countrywide.  I am just waiting to see how everything settles and where or if buyers under 720 will be able to get loans...

Mar 05, 2009 11:57 PM #6
Rainmaker
66,965
Susan Templeton
Bellingham, WA

Vaness, We have portfolio lenders who will go to 540 FICO for FHA at reasonable rates. Officially the FHA/VA and USRDA don't have a minimum score but the lender 'overlays' establish their own score limits based on performance. The thing is: if folk's scores are that low something is wrong and they need to address it before taking on more debt. 500 FICO scores will work if DTI is low and assets are solid...ie other compensating factors. Find an originator who knows how to work auto underwriting to advantage!

Mar 07, 2009 02:26 PM #7
Rainmaker
43,289
Vanessa V. Simmons
Real Living HER - Columbus, OH
Realtor

I agree with you but I am having a hard time with borrowers under 680.  Thanks for stopping by and your comments

Mar 07, 2009 11:08 PM #8
Anonymous
Der Lor

Hi. I am having problem obtaining a mortgage loan in WI. I was wondering if there was any way you can help me find a lender that is willing to work with my 540 credit score. I have a lot of past medical judgements that were put on me, and that is why my credit went down. I am a full time worker and also full time student. I have found a home but want to get pre-approved somewhere before making an offer.

Jul 30, 2009 04:06 PM #9
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Rainmaker
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Vanessa V. Simmons

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