Another Wave of Mortgage Underwriting Changes

Yesterday from First Franklin�..

First Franklin no longer allows loans at >95% LTV. This applies to all doc types.

Loans at >90% LTV have a maximum loan amount of $500,000 and require a minimum 680 FICO. This applies to all doc types.

90% loans are not available for first time homebuyers. To qualify for >90% funding, borrowers must have owned a home during the previous 3 year period.

The Stated Plus and Blended Access programs have been discontinued.

Today from Chase Home Equity�

• Effective August 6, 2007, all stated income/stated asset home equity loans and lines are discontinued, except…
• Self Employed borrowers with 700 Ficos
• *Commissioned salespeople are considered salaried, not self employed

Today from Wells Fargo�

• Alt-A Discontinued Until Further Notice
• Due to the appetite and demand for this product in the secondary market, we are not able to obtain pricing from our investors. Until we find out more, the rate sheets will not have pricing for this product. A newsflash will be going out soon regarding unlocked pipeline and loans locked that are not yet delivered.
• Thank you for your understanding during these market conditions. Please let us know if you have any questions.

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