At least three mortgage bankers, including two wholesale lenders, have begun offering new conventional products with high loan-to-value ratios.
Earlier this month, Fannie Mae and Freddie Mac both announced that they had expanded LTV ratios to 97 percent.
The expanded ratios
are available on purchase transactions where at least one co-borrower is a first-time home buyer.
They are also available on refinances if the borrower doesn’t qualify under the the Home Affordable Refinance Program.
United Wholesale Mortgage said Thursday that it has launched a conventional product with 97 percent LTV ratios.
The Troy, Mich.-based lender is utilizing Fannie’s
MyCommunityMortgage, which is handled through the newly released Desktop Underwriter 9.2.
“Immediately after Fannie Mae released version 9.2 of DU, we had the opportunity to reintroduce this program given Fannie’s changes, and we’re the first wholesale lender in the country to make it available,” United Wholesale Chief Executive Officer Mat Ishbia said in the news release.
Also offering Fannie’s 97 percent LTV product is Secure One Capital Corp., an announcement Thursday said.
Costa Mesa, Calif.-based Secure One noted that the program
is an unnamed extension of the MyCommunityMortgage program.
“This new program, not to be confused with the Conventional 97, is also referred to as the ‘expanded LTV’ program because it can help homeowners who do not qualify for a traditional HARP refinance,” Secure One said.
Secure One explained that it has no investor overlays on all agency loans — enabling it to approve some previously denied borrowers. It also said it lends its own money and
allows FICO scores down to 500, previous bankruptcies and prior foreclosures as well as past delinquencies.
In Austin, Texas, 360 Mortgage Group LLC has reportedly started offering the conventional 97 percent LTV program to its mortgage brokers.
Related:
GSEs Go Live with 97% LTV Loans (Dec. 8, 2014)
Less than two months after the director of the Federal Housing Finance Agency alerted mortgage bankers about a loosening of loan-to-value limitations, higher LTVs have become a reality.
