This entry was posted on Monday, March 19th, 2007 at 11:43 am and is filed under Mortgage Programs, Qualifying, Subprime Meltdown. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Another Lender Pulls Back on the Reins
Just another in a daily stream of email notices from lenders tightening their guidelines. Take care with your approvals and recheck constantly. The loan you had approved may no longer exist.
Indymac Bank announces immediate changes to their 80/20 program, to take effect Tuesday, 3/20/07 (note today’s date).
All 80/20’s in their pipeline need to be locked no later than today for Indymac Bank to honor this product. This includes all subprime, Alt A, and prime loans that don’t fall within the guidelines below.
These loans have to be locked through the Emits system not the Quick Pricer. Here is a highlight of the changes:
The No Ratio 80/20 will be gone Full doc will now require a min, credit score of 680 and 3 mos. PITI reserves Stated will now require a min. score of 700 and 4 mos. of reserves Maximum loan amount for a 1st mortgage will be $417,000 200% Payment shock requirement will be eliminated 2/6 Libor program will be eliminated Alternative sources of credit will no longer be acceptable
Got questions or concerns? Send me an email.
March 20th, 2007 at 9:48 am
And if you do lock today, expect pricing to be OUTRAGEOUS!.
I had a borrower pre-qualified at 7.125% on a 5/1 ARM I/O and 12.375 on a 30/15.
When I tried to lock yesterday, pricing came in at 9.125 discount points to get 8.125% on the first and a 16% second.