INDYMAC wants more CONFORMING LOANS FULL DOC!

[contraman]

Dear Valued Customer, As you are all well aware, the secondary markets are currently very volatile, and, in fact, other than the GSEs and Ginnie Mae, there is virtually no secondary market liquidity at present.

While Indymac has very strong capital and liquidity, we need to adapt to current market conditions and be very careful with the loans we are funding.

As a result, we, along with most other major mortgage lenders, need to make additional product cutbacks and implement additional price widening in order to ensure we can sell the loans we are funding.

While we hope that this current difficult environment will be short-lived, we all need to be realistic and be prepared to work within this tough market for a protracted period. In that respect, we need to quickly move as many borrowers as possible to this more full doc, "conforming" loan environment so that a greater percentage of our loans can be sold to the GSEs.

I also want to reaffirm to you our commitment to the mortgage business and assure you we will stay focused on providing you a stable, reliable business partner you can count on to meet your needs, along with the needs of your customers. Indymac Bank?s financial strength combined with and the stability of our national savings and loan charter will ensure we will be one of the strong survivors from this difficult period. I want to thank you for your business and for your commitment to Indymac Bank. We look forward to building an even stronger relationship going forward.

Best Regards, Walter Tharp CEO, Wholesale Lending

Let me see here. They want FULL DOC conforming loans so the government will buy them. A conforming loan limit is 417,000 in the state of CA.  

With all due repsect, not many SFR's in CA under 417,000 Mr. Tharp but I am sure there will be soon……

Time for the hammer to drop…….

 

[LA_Renter]

I don’t think these guys are going to make it to the finish line.

[LA_Renter]

I don’t think these guys are going to make it to the finish line.

[bsrsharma]

This is a magical moment. See how fast home prices will “limbo dance” below that limit. Good news for many aspiring Piggingtonians! When one can’t get a mortgage above 417K, that market essentially dies for all except cash buyers.

[bsrsharma]

This is a magical moment. See how fast home prices will “limbo dance” below that limit. Good news for many aspiring Piggingtonians! When one can’t get a mortgage above 417K, that market essentially dies for all except cash buyers.

[contraman]

Oh…..that is what my extremely wealthy mentor meant when he said, there comes a time when “CASH IS KING” and I am not talking about some guru who talks about his Poor and Rich Dad and co-markets books with some arrogant prick who lost his Father’s fortunes…..and get off on telling people they are fired…..what a joke that guy is….pure marketer….

Sincerely, Contraman

[contraman]

Oh…..that is what my extremely wealthy mentor meant when he said, there comes a time when “CASH IS KING” and I am not talking about some guru who talks about his Poor and Rich Dad and co-markets books with some arrogant prick who lost his Father’s fortunes…..and get off on telling people they are fired…..what a joke that guy is….pure marketer….

Sincerely, Contraman

[DaCounselor]

Does FM’s guidelines for purchase take into account what is happening behind the loan they are purchasing (aka 2nd position)? I’m guessing that FM can buy a $417K first mtg. that is part of an 80/20 deal (to the extent that 80/20’s are going to be made) and that will be conforming even with a $104K second mtg. sitting behind it, for a total loan of $521K.

[DaCounselor]

Does FM’s guidelines for purchase take into account what is happening behind the loan they are purchasing (aka 2nd position)? I’m guessing that FM can buy a $417K first mtg. that is part of an 80/20 deal (to the extent that 80/20’s are going to be made) and that will be conforming even with a $104K second mtg. sitting behind it, for a total loan of $521K.

[contraman]

FM guidelines are you can’t go over 417,000 total for the combined loans. 100% LTV capped at 417,000

Sincerely, Contraman

[contraman]

FM guidelines are you can’t go over 417,000 total for the combined loans. 100% LTV capped at 417,000

Sincerely, Contraman

[rb_engineer]

Do you think its reasonable to raise the threshold for conforming loans in California? Maybe to somewhere between Alaska/Hawaii and the rest of the country. Why are Alaska and Hawaii getting this treatment anyway?

[rb_engineer]

Do you think its reasonable to raise the threshold for conforming loans in California? Maybe to somewhere between Alaska/Hawaii and the rest of the country. Why are Alaska and Hawaii getting this treatment anyway?

[contraman]

No. I do not think they should raise the threshold because the market needs to correct itself to where it should have been before the very “loose” lending programs entered the market in 2001 and 2002. It is not a Fannie Mae issue. It is an asset bubble issue. The market is out of whack and the psychology is slowly shifting to one of fear and panic.

Can’t wait until 2009 / 2010.

Sincerely, Contraman

[contraman]

No. I do not think they should raise the threshold because the market needs to correct itself to where it should have been before the very “loose” lending programs entered the market in 2001 and 2002. It is not a Fannie Mae issue. It is an asset bubble issue. The market is out of whack and the psychology is slowly shifting to one of fear and panic.

Can’t wait until 2009 / 2010.

Sincerely, Contraman

[Author]

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