Industry News - 1.27.11
More Lenders are moving to 97% LTV in California: Pinnacle Capital, Plaza Home Mortgage, Stearns Lending, Sierra Pacific, Reunion Mortgage, and Icon Residential (applicable to their portfolio product only at this time). The high-LTV option requires a 720 minimum credit score and is available for purchase and rate/term transactions. All but Sierra Pacific will allow condos up to 97% LTV. Radian is the MI company that is insuring the high LTV’s.
Industry News - 1.27.11
More Lenders are moving to 97% LTV in California: Pinnacle Capital, Plaza Home Mortgage, Stearns Lending, Sierra Pacific, Reunion Mortgage, and Icon Residential (applicable to their portfolio product only at this time). The high-LTV option requires a 720 minimum credit score and is available for purchase and rate/term transactions. All but Sierra Pacific will allow condos up to 97% LTV. Radian is the MI company that is insuring the high LTV’s.
Just about all of the lenders have updated their pricing adjustments for their conforming products, according to Fannie Mae’s December announcement. The changes are effective for loans purchased by Fannie on or after April 1. Changes include an increase in pricing adjustments over 70% LTV; pricing adjustments now include any loan with subordinate financing, regardless of LTV; and CLTV ranges now starts at 80.01%. Pricing adjustments for Refi Plus programs remain unchanged. For details, go to https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/sel1017.pdf
Don’t forget about Flagstar’s new Jumbo Program – a 5/1 and 10/1 ARM jumbo is now available. This program will go up to 80% LTV with a $1MM loan amount, 75% to $1.5MM, and 70% to $2MM for 1 unit properties (Condos included), second homes up to 75% LTV, and cash-out is available up to 65% LTV. Look for pricing and other details at www.readyprice.com.
Flagstar Bank also made changes to their two-unit loan limit restrictions. Effective 1/28/11, they will accept loan amounts up to the applicable county agency limit. Previously, they would allow the lesser of the applicable county limit or $800K for owner-occupied properties or $650,000 for investment properties.
Wells Fargo lowered their purchase special from .500 to .250.
Wells Fargo also announced changes for escrow holdback accounts. "Escrows for completion will only be allowed for minor items that do not affect the safety, livability, marketability, or accessibility of the subject property. Escrows are not allowed on condominiums if the incomplete items are common elements or property."
ING Direct reminds us that they have no pricing hits for loan amounts up to $1.5MM, and claim they have the best 7/1 Jumbo pricing around. They offer 80% LTV for loan amounts up to $850,000, 65% LTV for loan amounts up to $1.5MM, and 50% LTV for loan amounts up to $3MM. Remember they have a 1 year prepay on all their products, regardless of note rate or price. Check out their pricing at www.readyprice.com.
Are you up on the compensation changes and S.A.F.E. Harbor Act coming this April? The Federal Reserve just released its Reg. Z and TILA compliance information. http://www.federalreserve.gov/bankinforeg/regzcg.htm
Speaking of compensation changes, NAMB (The National Association of Mortgage Brokers recently requested a delay in enforcing the changes to Regulation Z for 12 months and "further clarification pertaining to loan originator (LO) compensation which is set to be enforced as of April 1." We’ll see.
http://www.namb.org/images/2011-01-18_Letter-to-Federal-Reserve_LO-Compensation.pdf
Look for pricing, programs and California’s wholesale lenders at www.readyprice.com.
Tip of the Week: You can now save and keep track of your price quotes to borrowers in ReadyPrice. To learn how, click on the following link for a quick tutorial app.readyprice.com/VideoLibrary.aspx