Various Lender Updates

All Products

           As a reminder to the recent Agency Changes Rate is restricting all loan transactions to lesser of a maximum of 4 financed properties or the product's current restrictions.

Greyhawk

       Per the recent Fannie Mae and Freddie Mac announcements the Greyhawk program will now max the CLTV/HCLTV at 95%.  As a result of this change the 80/20, 75/25 and 90/10 Financing options are no longer available for Greyhawk effective immediately.  Relocks and extensions will not be permitted on loans affected by this change.

Pinehurst 

            The following adjustments apply each time the lock expiration is extended, regardless of current market conditions.  All other existing lock extension policies are unchanged.

 

Number of Days Extended	Current Price Adjustment	New Price Adjustment effective 6/17/2008
15	-0.125	-0.188
30	-0.250	-0.375
45	-0.375	-0.500
60	-0.500	-0.625

 

            The cost to relock a loan has been revised as well.  The following adjustments apply with each relock regardless of market conditions.  All other lock extension policies are unchanged.

 

Number of Days Extended	Current Price Adjustment	New Price Adjustment effective 6/17/2008
15	-0.125	-0.188
30	-0.250	-0.375
45	-0.375	-0.500
60	-0.500	-0.625
75	-0.625	-0.750

 

Doral 

            The below changes are effective on all locks received on or after June 19^th, 2008.   All loans that negatively affected by the below changes must be closed and funded to the borrower no later than August 1, 2008. 

• LTV/CLTV (Jumbo): Is being reduced from 95% to 90% LTV/CTLV
• Seasoning (All products): For any loan to be eligible for a cash-out refinance, the transaction must meet the following seasoning criteria:
  • The borrower must have owned the subject property for a minimum of 6 months prior to the registration date; and
  • Any previous refinance transactions on the subject property (rate/term or otherwise) must have closed at least 6 months prior to the application date on the new cash-out refinance.
• Ratios (All Products): Changes to ratio calculations when current home will not be sold: If the sale of the borrower's current home does not close prior to the subject property, the housing payment does not need to be included in the qualifying ratios provided the borrower:
  • Provides a copy of the fully executed sales contract and, the sale of the current home closes simultaneous with the subject transaction; or
  • If not closing simultaneously, provides a copy of the fully executed sales contract, lender's commitment letter to the buyer of the current home, and verification of post-close reserves sufficient to cover six months of PITI; or
  • If the borrower provides a signed lease agreement for the rental of their current residence, the full PITI payment does not need to be included in the qualifying ratios. However, any applicable negative rental income must be included as a liability in the qualifying ratios. In addition, the borrower must have post-close reserves sufficient to cover six months of PITI.

 

Score Advantage

The below changes are effective on all locks received on or after June 19^th, 2008.   All loans that negatively affected by the below changes must be closed and funded to the borrower no later than August 1, 2008. 

• Occupancy: Second Homes and Investment Properties are no longer permitted
• Loan Amonut: Maximum loan amount will be reduced to $500,000
• LTV/CLTV: Maximum LTV/CLTV is being reduced as follows
  • 1-2 Unit Properties will be reduced to a max LTV of 90% with a minimum fico of 590 for Full PITI and 620 for IO
  • 3-4 Unit Properties will now be reduced to 80% LTV (subordinate financing not permitted) with a minimum fico of 620
• Seasoning: For any loan to be eligible for a cash-out refinance, the transaction must meet the following seasoning criteria:
  • The borrower must have owned the subject property for a minimum of 6 months prior to the registration date; and
  • Any previous refinance transactions on the subject property (rate/term or otherwise) must have closed at least 6 months prior to the application date on the new cash-out refinance.
• Ratios: Changes to ratio calculations when current home will not be sold: If the sale of the borrower's current home does not close prior to the subject property, the housing payment does not need to be included in the qualifying ratios provided the borrower:
  • Provides a copy of the fully executed sales contract and, the sale of the current home closes simultaneous with the subject transaction; or
  • If not closing simultaneously, provides a copy of the fully executed sales contract, lender's commitment letter to the buyer of the current home, and verification of post-close reserves sufficient to cover six months of PITI; or
  • If the borrower provides a signed lease agreement for the rental of their current residence, the full PITI payment does not need to be included in the qualifying ratios. However, any applicable negative rental income must be included as a liability in the qualifying ratios. In addition, the borrower must have post-close reserves sufficient to cover six months of PITI.

Please feel free to contact your VP of Wholesale Lending or the Commitment Desk for further clarification if needed.

 Thank you for your continued business!!