Comments on: Today’s Mortgage Underwriting Changes http://www.lendingclarity.com/2007/08/23/todays-mortgage-underwriting-changes/ Home loans made easy Fri, 21 Nov 2008 15:42:59 +0000 http://wordpress.org/?v=2.3 By: Marc http://www.lendingclarity.com/2007/08/23/todays-mortgage-underwriting-changes/#comment-12695 Marc Sat, 25 Aug 2007 13:56:00 +0000 http://www.lendingclarity.com/2007/08/23/todays-mortgage-underwriting-changes/#comment-12695 Bob, there appear to be a few lenders still willing to accept reduced doc loans. They seem to be the large banks who can portfolio these loans while they wait for investors to return to bidding table. However, investors are showing no signs of cozying up to Alt A again, and I expect the discontinuation of this type of product to continue for awhile. Keep a watchful eye out if you have a deal hanging on that No Doc. I have had lenders decline previously approved loans or throw last-minute conditions at me that can't be met in time to close. The lock then expires, and they won't extend. Good luck Bob, there appear to be a few lenders still willing to accept reduced doc loans. They seem to be the large banks who can portfolio these loans while they wait for investors to return to bidding table. However, investors are showing no signs of cozying up to Alt A again, and I expect the discontinuation of this type of product to continue for awhile.

Keep a watchful eye out if you have a deal hanging on that No Doc. I have had lenders decline previously approved loans or throw last-minute conditions at me that can’t be met in time to close. The lock then expires, and they won’t extend. Good luck

]]> By: Bob Fortner http://www.lendingclarity.com/2007/08/23/todays-mortgage-underwriting-changes/#comment-12694 Bob Fortner Sat, 25 Aug 2007 01:47:01 +0000 http://www.lendingclarity.com/2007/08/23/todays-mortgage-underwriting-changes/#comment-12694 This is similar to what I'm being told by lenders I work with here in the Raleigh real estate market. I did have one broker tell me today that he could do a no doc loan for borrowers with a credit score of over 720 and with at least 5% down. The rate premium was minimal... maybe 1/4 point. This is similar to what I’m being told by lenders I work with here in the Raleigh real estate market. I did have one broker tell me today that he could do a no doc loan for borrowers with a credit score of over 720 and with at least 5% down. The rate premium was minimal… maybe 1/4 point.

]]> By: Andrew http://www.lendingclarity.com/2007/08/23/todays-mortgage-underwriting-changes/#comment-12687 Andrew Fri, 24 Aug 2007 01:55:47 +0000 http://www.lendingclarity.com/2007/08/23/todays-mortgage-underwriting-changes/#comment-12687 Fear is the problem right now. Investors have been scared away from the auction table. But they'll be back. All the dollars held by the Chinese and oil rich countries of the middle east have to find a home. As soon as the risk is repriced, all these programs will return. Fear is the problem right now. Investors have been scared away from the auction table. But they’ll be back. All the dollars held by the Chinese and oil rich countries of the middle east have to find a home. As soon as the risk is repriced, all these programs will return.

]]> By: Ricardo Bueno http://www.lendingclarity.com/2007/08/23/todays-mortgage-underwriting-changes/#comment-12686 Ricardo Bueno Fri, 24 Aug 2007 01:17:22 +0000 http://www.lendingclarity.com/2007/08/23/todays-mortgage-underwriting-changes/#comment-12686 Looks like investors have lost confidence in the home owner's ability to repay. It's going to be quite the stretch of road ahead before they regain that confidence in my opinion. But I also believe this correcting market is necessary. Looks like investors have lost confidence in the home owner’s ability to repay. It’s going to be quite the stretch of road ahead before they regain that confidence in my opinion. But I also believe this correcting market is necessary.

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