Reply With QuoteFor all that don't know the business. What were the changes the lending guidelines?
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!
For all that don't know the business. What were the changes the lending guidelines?
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.
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.
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.
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~
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
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....
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:
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.
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