This entry was posted on Wednesday, April 4th, 2007 at 2:15 pm and is filed under 100% Financing, Mortgage Programs, Qualifying. 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.
100% Financing Pullback hits Prime and ALT A
…the jist of this is that HSBC pulled it’s high LTV 2nds off the shelf today. 100% financing is disappearing fast. MortgageIT and Chase Manhattan Mortgage also announced similar changes in the last two days.
IMMEDIATE CHANGES TO HSBC STAND ALONE AND BLENDED HOME EQUITY PRODUCTS
Due to current market conditions,we have made the following changes to our Home Equity Stand Alone and Blended lending guidelines effective April 5, 2007.
CHANGES TO ALL HELOAN and HELOC PRODUCTS
100% TLTVs no longer allowed on any HSBC Home Equity product New Maximum TLTV of 95% for Full Documentation New Minimum credit score of 660 for Full Documentation Maximum TLTV of 89.99% for Stated Income Please note that the last day to register loans under the old guidelines is April 5, 2007, 10:00 P.M. EST. Any loans registered before this time will be honored for 60 days from the effective date of the changes and must be closed by June 4, 2007 or they will be withdrawn.
We apologize for any inconvenience created by these changes and remain committed to providing you with innovative home financing solutions for your customers. Please note that all product manuals have been updated. If you have any questions regarding these changes, please contact your Account Executive. HSBC Mortgage Corporation (USA) appreciates your business.
If you have a loan approved with 100% financing, be careful. Lenders are announcing changes daily and putting deadlines on approved loans. In some cases like SouthStar Funding, you may get absolutely no warning.
Quit shopping for loans strictly by price. Find an experienced mortgage broker you can trust, and forget about using an inexperienced friend or family member or part time lenders. Most of the horror stories I hear involve abuses by inexperienced people you thought you could trust.
June 7th, 2008 at 8:59 am
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