Various Product and Guideline Changes
Due to recent changes in the Secondary Marketplace and Mortgage Insurance companies guideline changes we will be making the following changes to our Freddie Mac programs.
Home Possible Program(effective immediately)
- LTV/TLTV > 97% require a minimum 700 FICO score.
- No other secondary financing allowed other than Affordable Seconds
- If all borrowers are First-Time Homebuyers at least one borrower must attend Homeownership classes. Homeownership Education Certification must be in file.
- Home Possible LTV fee adjustments will now apply to all (3% cash down from personal funds) products.
- Borrower(s) must not have an ownership interest in any other real property other than the subject property as of the date of closing.
- Interested Party Contributions have been updated to match current Freddie Mac requirements.
Freddie Mac Pricing Changes (effective March Feb 14th, 2008)
|LTV Range / Price Adjustment|
|FICO Score||>60 to <= 70%||> 70%|
|> = 680 to < 720||0.500||0.500|
|> = 660 to < 680||0.500||1.250|
|> = 640 to < 660||0.500||1.750|
|> = 620 to < 640||0.750||2.500|
LP A-MINUS LEVEL PRICE ADJUSTMENT INCREASE
|Level 1||1.250 pt.|
|Level 2||1.750 pt.|
|Level 3||2.750 pt.|
|Level 4||3.500 pt.|
· Our Freddie Mac LPMI and Affordable LPMI programs will now be limited to a 10 day lock period. The loan must be in a Clear to Close status in order to lock
Program Discontinuations (effective immediately)
Guaranteed Rate will be discontinuing
Ø Freddie Mac Stated loans
Ø FNMA LMPI 100% LTV
Ø A minus Level 5
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!!