|
|||
More wholesale lenders — including Countrywide Financial Corp. — have advised mortgage brokers they are no longer interested in stated-income and 100 percent loan-to-value loans, according to correspondence reviewed by MortgageDaily.com.
Mortgage broker Chris Goulart of Multicorp Inc. told MortgageDaily.com that the barrage of e-mails began hitting his inbox last week. “I received a half-dozen just last week,” Goulart said. “A lot of the 100 percent are going away and a lot of no-down purchase loans are going away; they are still available but the qualifications now are much higher — higher credit report and you have to go full doc.” Countrywide advised brokers last week it is putting a 90 percent loan-to-value and combined loan-to-value cap on all subprime programs beginning with those locked on or after March 19, according to a copy of the announcement. “The current product offering of 95 percent LTV/CLTV will be eliminated on all full Doc, bank statement, stated self employed, and stated wage-earner programs,” the announcement said. The mortgage behemoth added that its Alt-A program offers “100 percent financing for Full Doc borrowers with a minimum credit score of 620 and reduced doc borrowers with a minimum credit score of 660.” Countrywide representatives did not return calls for comment. Flagstar Bank confirmed with MortgageDaily.com that last Friday’s newsletter stated, “Due to continued market fluctuation in the subprime arena, effective Monday, March 12, 2007, Flagstar will be removing the eligibility to do 100 percent financing on all DealMaker Program Stated Income Verified Assets loans.” Citing current market trends, GreenPoint reps notified brokers by that no longer will they accept 100 percent financing, according to a copy of an e-mail announcement reviewed by MortgageDaily.com. “While this is a big adjustment, GreenPoint must adapt to the current market. We have the best resources and management in the industry to weather this storm. We will continue to offer the most competitive programs, rates, and superior customer service,” the e-mail said. Calls to GreenPoint were not immediately returned. Goulart, the mortgage broker, added that he has received similar guideline revisions from Option One and WMC Mortgage. WMC spokeswoman Brandie Young told MortgageDaily.com the company has been making revisions and adjustments as needed by the market and confirmed that WMC has “moved away from 100 percent financing.” Option One representatives did not return calls seeking comment. The wholesale program adjustments come on the heels of a report from Campbell Communications indicating that, in addition to curtailed stated-income and 100 percent LTV lending, wholesalers are requiring appraisal reviews and new credit reports more often. |
|||
Â
|
|||
Paula Parisot is a MortgageDaily.com feature reporter and a blogger at CloserBlog.com who has also worked in the mortgage industry. e-mail Paula at: PaulaParisot@MortgageDaily.com |