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FASTERDAMITT
08-07-2007, 02:04 PM
I guess we need to call on the Pres and Arnold to bail out the thousands of Mortgage and REAL Estate professionals that will be jobless and homeless soon after the latest change in lending guidelines this week. I'm sure this will be good for our economy. Even alot tougher for investors to buy out the foreclosures. Just hope my fellow boaters have been padding the nest egg a little for tough times.
Looks like history will prevail as our peak has peaked and our bottom is on the horizon. Good luck to all!

USCFAN
08-07-2007, 02:16 PM
For all that don't know the business. What were the changes the lending guidelines?

dunaholic
08-07-2007, 02:20 PM
Well, there have been several. One big one is that American Home Mortgage shut it doors. Wells Fargo dicontinued their subprime business and Most of the A-Paper lenders are pulling back on Stated income loans. Meaning that you have to be able to provide proof of income to qualify. Not the easiest thing to do for a self employed person.

Glamasu
08-07-2007, 02:25 PM
My wife is in mortgage industry...She rattled off a bunch of numbers that don't mean squat to me...What I got out of it was you need a 700+ fico and 40K in the bank to even be considered for a home loan.
All the "creative" ways to get a mortgage loan are gone....Which is good and bad depending on which side of the line you fall on.

dunaholic
08-07-2007, 02:26 PM
This is what Indymac said the other day:
If you don't understand some of the mumbo Jumbo I will Read between the lines for you.....This is really what Indymac is saying. "Your Screwed unless you have a lot of equity and/or a 700 Fico score".
Dear Valued Customer,
In response to recent liquidity issues in the secondary mortgage market, we have found it necessary to revise a number of our program limits and underwriting guidelines. The following revisions became effective for loans that were not rate locked prior to 12:00 p.m. Pacific Time today. The Indymac Lending Guide will be updated to reflect the changes shortly.
Loans affected by the revisions below but rate locked prior to the effective date will be accepted and funded provided all QuickPricer® ratelocks are converted to full e-MITS® submissions by August 10, 2007 and all credit packages are delivered to Indymac by August 17, 2007. In addition, there will be no grace period or "auto-extensions" for clearance of conditions after the rate lock expiration. All loans that were previously delivered and not ratelocked are subject to the revised guidelines.
Program Revisions - Multiple Programs
The following revisions apply to the following programs, where applicable:
• Alt A - Standard Products with loan amounts that exceed the current conforming loan limit
• Alt A - Super Jumbo and Ultra Jumbo Program loans - all loan amounts
• Alt A - Pay Option ARM loans - all loan amounts
• Construction to Permanent Loans with loan amounts that exceed the current conforming
loan limit
• Consumer Residential Lot Loans - all loan amounts
• HELOCs - all loan amounts
Documentation Types:
• Stated Income documentation is available only when one or more of the borrowers is
self-employed for loans with the following characteristics:
• LTV or CLTV greater than 70% or
• Decision Credit Score is less than 700
Stated Income remains available for borrowers with all types of income when the LTV &
CLTV are less than or equal to 70% and the Decision Credit Score is 700 or greater.
• FastForward, No Ratio, NINA, and No Doc documentation types have been eliminated.
Maximum LTV/CLTV: For Alt A - Standard Products, the maximum LTV/CLTV is 95%. For the Lot loan program, the maximum LTV is 80%.
Minimum Decision Credit Score: A minimum Decision Credit Score of 640 is required, unless a higher score is specified in the applicable program limit table.
First Time Homebuyers:
• The maximum LTV/CLTV is 90%
• The minimum Decision Credit Score is 680
• Not eligible for Construction to Permanent loans or Lot loans
Pay Option ARM Products: The following products have been discontinued:
• 12 MAT
• 40 Year 12 MAT
• FlexPay 12 MAT 1 Year
• Flex Pay 3/1 LIBOR
The Flex Pay 5/1 & 7/1 LIBOR products remain available.
For further questions, please contact your Indymac Bank sales representative.
Thank you.

Nord
08-07-2007, 02:34 PM
The sky is falling..........The sky is falling..........
You know, our economy always goes in a cycle. When its bad, it can be very bad. My parents are very conservative people when it comes to money. This is because my grandparents like most lived through the depression. I think this is why I am tight with my money. I have always had a fear in the back of my mind that something like the great depression could happend again...
Who knows.......
As stated before, hope people didn't spend money like idiots on toys the last 8 years that might come back to bite them in the a**..........
~NORD~

reDECKulous
08-07-2007, 02:34 PM
Just like anything, only the strong will survive.
Even with the recent changes, there are plenty of banks that are still doing 100% purchases down to 620 and 660 fico's as well as Option ARM's to 95% LTV. You just have to find the right bank. As far as the 700+ FICO and 40k in the bank... that is a little far fetched.
Eric

AirtimeLavey
08-07-2007, 02:38 PM
Just like anything, only the strong will survive.
Even with the recent changes, there are plenty of banks that are still doing 100% purchases down to 620 and 660 fico's as well as Option ARM's to 95% LTV. You just have to find the right bank. As far as the 700+ FICO and 40k in the bank... that is a little far fetched.
Eric
The sky is not falling, but it is starting to rain....
Doh, didn't mean to "quote" reDeck's post....

FASTERDAMITT
08-07-2007, 02:40 PM
This is one of better of most news!
• Stated Income documentation is available only when one or more of the borrowers is
self-employed for loans with the following characteristics:
• LTV or CLTV greater than 70% or
• Decision Credit Score is less than 700
Stated Income remains available for borrowers with all types of income when the LTV &
CLTV are less than or equal to 70% and the Decision Credit Score is 700 or greater.
• FastForward, No Ratio, NINA, and No Doc documentation types have been eliminated.
Maximum LTV/CLTV: For Alt A - Standard Products, the maximum LTV/CLTV is 95%. For the Lot loan program, the maximum LTV is 80%.
Minimum Decision Credit Score: A minimum Decision Credit Score of 640 is required, unless a higher score is specified in the applicable program limit table.
First Time Homebuyers:
• The maximum LTV/CLTV is 90%
• The minimum Decision Credit Score is 680
• Not eligible for Construction to Permanent loans or Lot loans
Pay Option ARM Products: The following products have been discontinued:

dunaholic
08-07-2007, 02:40 PM
Just like anything, only the strong will survive.
Even with the recent changes, there are plenty of banks that are still doing 100% purchases down to 620 and 660 fico's as well as Option ARM's to 95% LTV. You just have to find the right bank. As far as the 700+ FICO and 40k in the bank... that is a little far fetched.
Eric
I agree with you 100%. I was lucky enough to see the writing on the wall about a year ago. I downsized and now my shop is lean and mean. My overhead is low so I can be much more competitive. It's the guys with the fancy office and the big house in Newport Beach that are going to make it easier for the rest of us to survive when he/she goes under.

reDECKulous
08-07-2007, 02:41 PM
I guess we need to call on the Pres and Arnold to bail out the thousands of Mortgage and REAL Estate professionals that will be jobless and homeless soon after the latest change in lending guidelines this week. I'm sure this will be good for our economy. Even alot tougher for investors to buy out the foreclosures. Just hope my fellow boaters have been padding the nest egg a little for tough times.
Looks like history will prevail as our peak has peaked and our bottom is on the horizon. Good luck to all!
I know a lot of people that were/are making over $500k/year.. some waaaaay over $500k/year. Does this mean they are going to be homeless and jobless? Think again. Even if you cut the income in half you are still well above 99.999% of the population. I will take $300k/year during down years as opposed to a salary of $90k. Just my 2 cents though :)
Eric
Btw People are always going to need homes, millions of people will need to get out of their adjustables. A market downturn will eliminate some of the competition and make it easier for the guys who are in this for the long run.

32sunrkt
08-07-2007, 02:41 PM
It means no more free money ... buck stopped a lil while ago.
WHAT I LIKE :
- Is pricies for homes is going to fall fast with the next 12 - 18 mos. in most area's.
- Rental Properties will soar
- The volumes of smok'in HOT chickies & cougars look'in for free drinks
at watering holes in last years garb is ever so omni present in Newport,Hunting beach these days. Perhap's their nuevo-rich'e boyfriends and their own quasi-jobs dried up. It's easy pickens out there now,,,,JUST WAIT TIL THE HOLIDAYS GET CLOSE !!
Basically, the folks in the mort-real estate industry actually though they earned a place in all that frenzy... Like this is why they went to jr college, this is why they get to drive a nice car, eat at Morton's twice a week, afternoon's at south coast, etc.. Most had seriously thought that they had "arrived" & this is the way it was going to be...oh you know; the whole grey goose life style ...
If ya ask most, they did earn it. This is what they get for putting
people into those loans to begin with ... and so the story goes with teh stock market wher it is now,,,, the rich will indeed get richer... watch.
- R

dunaholic
08-07-2007, 02:47 PM
When the prices drop off, and they will fall a little more before the bottom, it will create a whole new market for investors. Let's face it, this is just an adjustment that was overdue. What is happening is supposed to happen. The media is just s crazy as they have always been about exploiting the situation. I can see it coming in a few weeks.
"MORTGAGE WATCH 2007"!!!!!!
"Story at 11".

Glamasu
08-07-2007, 02:53 PM
Just like anything, only the strong will survive.
Even with the recent changes, there are plenty of banks that are still doing 100% purchases down to 620 and 660 fico's as well as Option ARM's to 95% LTV. You just have to find the right bank. As far as the 700+ FICO and 40k in the bank... that is a little far fetched.
Eric
A little far fetched ??? She just had 2 deals fall out 1 of because of 697 fico and 10k in the bank were no longer acceptable...It had to be 700 or better and 35K in the bank...New guidlines from countrywide....Maybe she needs to find the right bank??:idea:

reDECKulous
08-07-2007, 03:00 PM
I rarely use Countrywide. Ever bank is going to have different guidelines. Just takes a little time to call/email around and find out who can do it. I can do almost anything with a 697 FICO. PM me is she really can't find a bank and she wants some help.
Eric
A little far fetched ??? She just had 2 deals fall out 1 of because of 697 fico and 10k in the bank were no longer acceptable...It had to be 700 or better and 35K in the bank...New guidlines from countrywide....Maybe she needs to find the right bank??:idea:

Nord
08-07-2007, 03:05 PM
I know a lot of people that were/are making over $500k/year.. some waaaaay over $500k/year. Does this mean they are going to be homeless and jobless? Think again. Even if you cut the income in half you are still well above 99.999% of the population. I will take $300k/year during down years as opposed to a salary of $90k. Just my 2 cents though :)
Eric
Btw People are always going to need homes, millions of people will need to get out of their adjustables. A market downturn will eliminate some of the competition and make it easier for the guys who are in this for the long run.
If people get tight with their money, those people with high incomes will be effected......50% like you say??? Who knows, but that still puts a bite in spending. These people probably won't be effected, however a big part of the population will. I don't think that your high income buddies would be concidered part of the average poplulation.........right?? The average income for a house is usually something like 60g's or something like that (2 sources of income) There are a glut of people out there in a situation like that. These are the people that will get hard.

Glamasu
08-07-2007, 03:06 PM
I rarely use Countrywide. Ever bank is going to have different guidelines. Just takes a little time to call/email around and find out who can do it. I can do almost anything with a 697 FICO. PM me is she really can't find a bank and she wants some help.
Eric
When she gets home I will definetly show her this....Thanks

dunaholic
08-07-2007, 03:20 PM
When she gets home I will definetly show her this....Thanks
697 Fico is a slam dunk easy loan.

FASTERDAMITT
08-07-2007, 03:36 PM
697 Fico is a slam dunk easy loan.
Ya! Stated/stated jumbo for 900k 100% LTV, no reserves? Too many LO's will say they can do anything untill they're in escrow for 60 days and nothing happens. Not to pic on anyone here but know the full conditions before you say it's easy!:confused:

TOBTEK
08-07-2007, 03:44 PM
My wife is in mortgage industry...She rattled off a bunch of numbers that don't mean squat to me...What I got out of it was you need a 700+ fico and 40K in the bank to even be considered for a home loan.
All the "creative" ways to get a mortgage loan are gone....Which is good and bad depending on which side of the line you fall on.
ahhhhh....NO, thats not true.
Washington Mutual now has a max 65% CLTV on their stated income products. BUT there are still plenty of other lending sources that will do 100%. The strong lenders will prevail. I read on another mortgage internet forum that Countywide has over 186 BILLION in cash reserves. IF you need a loan, call me. I'll get it placed.

dunaholic
08-07-2007, 03:51 PM
Ya! Stated/stated jumbo for 900k 100% LTV, no reserves? Too many LO's will say they can do anything untill they're in escrow for 60 days and nothing happens. Not to pic on anyone here but know the full conditions before you say it's easy!:confused:
That is an almost impossible loan even when the market was good. Do have such a loan that needs to be done, because if you do I would like a shot at it. Going to need soe reserves though.

TOBTEK
08-07-2007, 04:08 PM
That is an almost impossible loan even when the market was good. Do have such a loan that needs to be done, because if you do I would like a shot at it. Going to need soe reserves though.
as of right now, I know a few lenders that will do that with the right fico.

Xlration Marine
08-07-2007, 04:23 PM
I know a lot of people that were/are making over $500k/year.. some waaaaay over $500k/year. Does this mean they are going to be homeless and jobless? Think again. Even if you cut the income in half you are still well above 99.999% of the population. I will take $300k/year during down years as opposed to a salary of $90k. Just my 2 cents though :)
Eric
Btw People are always going to need homes, millions of people will need to get out of their adjustables. A market downturn will eliminate some of the competition and make it easier for the guys who are in this for the long run.
MAYBE??? But I don't think these people are living off a 200k budget either. If they were put down to 300k it would hurt them just as bad as the rest. The people across the street from us lived in SNOTTSDALE. They said everyone up there is broke or on the edge of being broke. Years ago there was a realator (in snottsdale) that had over 80k in credit cards, pre casino days as well. If there making 500k there spending 400 of it. I'll bet ya. It's called keeping up with the Jones family.

Glamasu
08-07-2007, 04:44 PM
Again I'm not in the mortgage bus...For the obviouse reasons you have all stated....I'm an elctrician by trade....I think either I didn't hear her( I have selective hearing sometimes:D ) correctly...Or there is more to the story...Either way I will show her this maybe some business can be done here..

reDECKulous
08-07-2007, 05:26 PM
Very true. It's not how much you make, but how much you save. A coworker of mine made $1.3M last year, he's 26 years old. He currently has $45k/month in bills (8 houses, only a few rented). He is still killing it, but he's stressed out like no other.
What I was getting at with the $500k-$300k drop is that there is still a lot of money to be made and if you make a few minor lifestyle adjustments, you'll be fine.
Eric
MAYBE??? But I don't think these people are living off a 200k budget either. If they were put down to 300k it would hurt them just as bad as the rest. The people across the street from us lived in SNOTTSDALE. They said everyone up there is broke or on the edge of being broke. Years ago there was a realator (in snottsdale) that had over 80k in credit cards, pre casino days as well. If there making 500k there spending 400 of it. I'll bet ya. It's called keeping up with the Jones family.

revndave
08-07-2007, 05:40 PM
I here what you guys are saying.My rep went on vaction for a week and it changed on us.I'm self employed mid 600 score and have 10% down.She got it done.It wasn't easy.She was very concerned about all the changes.

westair
08-07-2007, 06:58 PM
Not sure what this means but we are starting construction on a new Countrywide Home Loan Office in Oceanside. Just a little surprised after reading all the doom. :confused:

Glamasu
08-07-2007, 07:07 PM
Not sure what this means but we are starting construction on a new Countrywide Home Loan Office in Oceanside. Just a little surprised after reading all the doom. :confused:
Thats good...Countrywide is a direct lender....I beleive the independent shops are the ones in trouble right now

Glamasu
08-07-2007, 07:13 PM
I rarely use Countrywide. Ever bank is going to have different guidelines. Just takes a little time to call/email around and find out who can do it. I can do almost anything with a 697 FICO. PM me is she really can't find a bank and she wants some help.
Eric
Alright...I have been told by my wife to shut my pie hole when it comes to chit I know little or nothing about.....Kinda what you and some others said here but in a nicer way:D :D
She has a handle on it....she did her home work some more and found homes for her deals......
So with that said I will now shut my pie hole:D :D

bigq
08-07-2007, 07:47 PM
Alright...I have been told by my wife to shut my pie hole when it comes to chit I know little or nothing about.....Kinda what you and some others said here but in a nicer way:D :D
She has a handle on it....she did her home work some more and found homes for her deals......
So with that said I will now shut my pie hole:D :D
LOL:D :D :D
I think we can all relate:D

duner21
08-07-2007, 07:59 PM
A little far fetched ??? She just had 2 deals fall out 1 of because of 697 fico and 10k in the bank were no longer acceptable...It had to be 700 or better and 35K in the bank...New guidlines from countrywide....Maybe she needs to find the right bank??:idea:
She needs another lender. With that fico i can do a loan with 5% down and not look at a paystub or bank statements. Search around plenty of lending still going on.

duner21
08-07-2007, 08:01 PM
Alright...I have been told by my wife to shut my pie hole when it comes to chit I know little or nothing about.....Kinda what you and some others said here but in a nicer way:D :D
She has a handle on it....she did her home work some more and found homes for her deals......
So with that said I will now shut my pie hole:D :D
I replied to the other post before i read all the way down sorry! :D Glad she worked it out!

ol guy
08-07-2007, 08:04 PM
Just a thought but might want think about how this woulld affect the infux of others taking over.

FASTERDAMITT
08-07-2007, 08:08 PM
You mean the other surviving lending institutions?

FASTERDAMITT
08-07-2007, 08:11 PM
She needs another lender. With that fico i can do a loan with 5% down and not look at a paystub or bank statements. Search around plenty of lending still going on.
I agree! 5% down will get you along ways. The guidelines are changing so rapidly it's getting me dizzy, or is it the jack!!!!:D

MikeF
08-07-2007, 08:14 PM
Even alot tougher for investors to buy out the foreclosures.
How so............What has changed to make it tougher?

talkinghead
08-07-2007, 08:15 PM
300k on a down year processing some paperwork - what a scam.
The RE and Mortgage industry is full of scammers though - no secret there.

C-2
08-07-2007, 08:21 PM
So I was speaking with a friend with 35 years in the biz, he predicts the lending will continue to tighten until it's almost impossible to fund/sell loans, and within 3 - 6 months, the guidelines will again loosen up. In the meantime, it will tank a few more companies.
Thoughts?

duner21
08-07-2007, 08:22 PM
I agree! 5% down will get you along ways. The guidelines are changing so rapidly it's getting me dizzy, or is it the jack!!!!:D
Agreed i have a sub prime deal great fico (had a bk 4 months ago on a business) 100k down into a 300k house full doc. I had him done at 6.8 for the rate. He is closing thursday i got a call from the lender today his new rate8.925:mad: . Try explaining that one. I think that is the worst azz chewing i have ever got even though i did what i promised. He just got caught at a bad time. What bugs me the most is he doesnt understand and thinks i am screwing him. I even offered to show him all of the paperwork that shows 6.8.

FASTERDAMITT
08-07-2007, 08:23 PM
300k on a down year processing some paperwork - what a scam.
The RE and Mortgage industry is full of scammers though - no secret there.
There are order takers that just answer phones and fill out apps, pass on the tougher work to Brokers and processors and then there are lenders that prefer to keep it all under control themselves for customer satisfaction. I am proud to be the latter.
Yes your correct there are alot of people that don't care about repeat business, just a slam dunk every time. Those are the ones that will disappear in the near future, if they have'nt already!

FASTERDAMITT
08-07-2007, 08:26 PM
Agreed i have a sub prime deal great fico (had a bk 4 months ago on a business) 100k down into a 300k house full doc. I had him done at 6.8 for the rate. He is closing thursday i got a call from the lender today his new rate8.925:mad: . Try explaining that one. I think that is the worst azz chewing i have ever got even though i did what i promised. He just got caught at a bad time. What bugs me the most is he doesnt understand and thinks i am screwing him. I even offered to show him all of the paperwork that shows 6.8.
Ya, he's heard of too many getting jerked off before. Now it's beond the LO's control!

duner21
08-07-2007, 08:39 PM
Ya, he's heard of too many getting jerked off before. Now it's beond the LO's control!
Sure he has. I did the best i could explaining it to him that is all i can do. I take alot of pride in my job in delivering what i promise.

FASTERDAMITT
08-07-2007, 08:39 PM
Gee, sorry to hear all the gloom and doom. On the flip side, I might happen to have 5% available and a decent (higher 700) fica. Anyone losen anything interesting that will atleast triple in value in about 4-5 yaers or so? I might be interested -> I sorta always wanted to be a slum-lord.:D
Rio
Ya, I'll sell you my beachfront property here in Palm Springs!:D

revndave
08-07-2007, 10:03 PM
Agreed i have a sub prime deal great fico (had a bk 4 months ago on a business) 100k down into a 300k house full doc. I had him done at 6.8 for the rate. He is closing thursday i got a call from the lender today his new rate8.925:mad: . Try explaining that one. I think that is the worst azz chewing i have ever got even though i did what i promised. He just got caught at a bad time. What bugs me the most is he doesnt understand and thinks i am screwing him. I even offered to show him all of the paperwork that shows 6.8.
Same thing happened to me.I didn't get mad.I knew it could change at anytime.We submitted today.My rate went up 1 point in one week.:eek: Things are changing all the time.

selfmade
08-07-2007, 10:04 PM
Agreed i have a sub prime deal great fico (had a bk 4 months ago on a business) 100k down into a 300k house full doc. I had him done at 6.8 for the rate. He is closing thursday i got a call from the lender today his new rate8.925:mad: . Try explaining that one. I think that is the worst azz chewing i have ever got even though i did what i promised. He just got caught at a bad time. What bugs me the most is he doesnt understand and thinks i am screwing him. I even offered to show him all of the paperwork that shows 6.8.
Man I feel you i had the same thing happen to me from Friday to Monday. I got quoted a rate on Friday and come Monday it jumped 2%. I had to shop around but eventually I found a lender who still kept me in the game.

C-2
08-08-2007, 08:36 AM
Any takers on when guidelines will loosen up (after lenders realize they tightened it too tight, too quick, and can't make any money)?
We had plans to build our dream home, while in our current home. WRONG!
Where did that crystal ball go?

essexjet
08-08-2007, 09:03 AM
Any takers on when guidelines will loosen up (after lenders realize they tightened it too tight, too quick, and can't make any money)?
We had plans to build our dream home, while in our current home. WRONG!
Where did that crystal ball go?
08 :D