Archive for the 'Qualifying' Category
Urgent Notice from Wells Fargo on 100% Financing
Today’s message from Wells Fargo on 100% stated income/stated asset loans.
Urgent notice: Wells Fargo Home Equity will continue to have SIVA (stated income/verified assets) to 100%, however, the Stated Income/Stated Asset to 100% will no longer be offered for loans locked/registered on or after Tuesday, April 17th. Monday, April 16th will be THE FINAL DAY to get your SISA 100% loans in our system (an earlier communication incorrectly approximated a final locking date of April 23). Mark your calendars now and make sure you don’t miss the final SISA 100% CLTV opportunity.
read comments (0)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will be honored for 60 days from the effective date of the changes and must be closed by June 4, 2007 or they will be withdrawn.
HSBC Announces Pull Back on ALT A 100% Financing
…more 100% financing evaporates, this time from HSBC and affecting what we call ALT A.-not “A paper”, but not quite subprime either. Keep an eye on your 100% financing, even if it is already approved. If your lock expires before you can close, you may be without a loan.
PLEASE LOCK ALL 80/20 SIVA AND FULL DOC LOANS ALREADY REGISTERED TODAY WITH HSBC!!
HSBC WILL HONOR ALL LOANS ALREADY LOCKED BUT WILL NOT ACCEPT ANY MORE!!
NEW GUIDELINES WILL GO INTO EFFECT ON ALT-A IMMEDIATELY SIVA (stated income, verified assets) MAX CLTV 90% FULL DOC MAX CLTV 95%
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.
FHA loans are the forgotten toy in the box. Gathering dust like some old Atari game while we’ve played with our shiny new Xbox, FHA loans years ago lost their appeal. It’s time to reconsider.
Here six reasons every first-time buyer should consider an FHA loan.
100% financing. FHA was the first to offer 100% loans. FHA loans actually require a 3% down payment, but they can be combined with a 2nd loan to cover the down payment and closing costs. If you don’t need that 2nd loan because Aunt Betty wants to help, FHA will allow her to “gift” all of the necessary cash. You don’t have to contribute 5% of your own money to the purchase. While FHA will require you document your income—no “liar loans” allowed—they are often lenient with qualifying ratios, particularly now with the use of Automated Underwriting.
Worthless Pre-Approvals
So you’ve decided to buy a home. And being the educated consumer or Realtor that you are, you secured loan approval for your 100% financing in advance. Now, you’ve got a formal approval and all the conditions are met.
Smooth sailing, right? Not necessarily.
I recently wrote an article entitled 6 Reasons Your Next Loan May Take Longer Than It Should. The post got a lot of attention over at Active Rain where most people had begun experiencing these very problems. And I’m afraid it’s just the tip of the iceberg.
The way the real estate market has slowed, you would think lenders would be just waiting to pounce on and approve next loan that comes through. You’d think our “turn times” would be faster for underwriting, drawing loan docs, funding and recording. You’d think loans should virtually fly through the approval process. You’d think all that, and yet you’d be wrong.
So just exactly why are loans taking longer than they should right now? Here are 6 reasons that come to mind:
Reason #1: Layoffs
Like any business, when things slow down the mortgage industry lays people off. This slowdown started in late 2005. Companies have had plenty of time to wake up and smell the coffee. Wholesale lenders have laid off underwriters, doc drawers, and funders and attempted to restructure their processing centers. Most are now under-staffed and service is suffering.
Reason #2: Seasonal Factors
Thanksgiving, Christmas, New Years, and Presidents Day all punch holes in the work week. People leverage time off by combining vacation days and holidays, causing further staffing shortfalls during these times. As I cough and hack my way through the last few days, I am reminded of the toll that colds and flu can take on the remaining workforce.