Posted by Shaun on January 25, 2006 at 10:48:16:
That was only 1 lender. There are many more that will still do these loans. Also, that isn’t the only market that is dissolving. In the past 6 months, as an LO, haven’t you noticed all the companies changing requirements and dropping all sorts of different programs? You used to be able to grab a 600 score and go stated on an o/o house no problem…now even a 620 isn’t as easy to find. Wall Street investors are making smarter decisions and only buying solid loans these days with the market the way it is.
100% financing for NOO on the way out??? - Posted by Ben Carmona
Posted by Ben Carmona on January 25, 2006 at 09:23:42:
The secondary market for high ltv 2nd mortgages may be dissolving. I’ve had several lenders tell me they have disconitued their products. Take a look at the email from one of them.
LOAN PROGRAM TO BE DISCONTINUED!
PLEASE SHARE WITH ALL IN YOUR OFFICE!
This applies to the following ONLY:
100% CLTV NOO 1-4 Family Transactions
100% CLTV OO 3-4 Family Transactions
The Mortgage Maker and ALT-A will discontinue allowing CLTVs of 100% as of February 24, 2006.
After 2/24/2006, the maximum allowed under the Mortgage Maker and ALT-A programs will be 90% CLTV for the above listed transactions.
Lehman Brothers, parent company of Aurora, has found that there is no appetite for these types of loans on Wall Street. The investors who normally buy our paper are no longer interested in this type of paper. Every lender that sells their loans to Aurora/Lehman Brothers will be affected.
What do you need to do?
Lock your loans quickly! If you are working with borrowers interested in 100%, get them off the fence! You will be able to lock these loans until 5pm local time on 2/24. I will not be able to grant any exceptions afterward. Once your files are locked, lock extensions will not be granted