MAJOR Lender Change today August 1st

[HLS]

Just received an email from a MAJOR Prime Lender (that is also a bank) NOT subprime.

Effective immediately, Only Full Documentation loans will be accepted, and 1st position only.

With a high enough credit score, 100% financing single loans are still available for purchases, but no more 2nds, or no option arm loans of any type.

No Stated Income loans for now either.

The market is continuing to worsen. It will be interesting to see if other major lenders follow…

Changes are subject to revision at any time.

Not a good sign, but not unexpected either.

[vegasrenter]

Thanks for the update. Mortgage tightening is still not affecting asking prices here in LV

[vegasrenter]

Thanks for the update. Mortgage tightening is still not affecting asking prices here in LV

[donaldduckmoore]

same here, vegasrenter.

HLS, thanks for the update. Does that mean 2nd will not need full document, what is considered a high enough credit score? Thanks.

[donaldduckmoore]

same here, vegasrenter.

HLS, thanks for the update. Does that mean 2nd will not need full document, what is considered a high enough credit score? Thanks.

[Bugs]

Every day brings another indication that the lenders are changing their priorities. It’s like tightening the screws.

[Bugs]

Every day brings another indication that the lenders are changing their priorities. It’s like tightening the screws.

[HLS]

This lender was previously very competitive with 2nds, If not combined with a 1st, they are known as “stand alone 2nds”..

At this time,they are no longer offering 2nds.
This only applies to THIS one lender right now.

As the market contracts, rates will rise from those that still offer them.
These loan portfolios get sold off on Wall St., there were NO buyers for a strong package this week, so stop immediately.

The only guarantee is that there will be changes.

This is due to liquidity crunch on Wall Street for the secondary market.
Several hedge funds declaring bankruptcy this week have created a fear not seen in awhile.

Guidelines can change at any time, better or worse, but programs that were available Monday just aren’t available today.

[HLS]

This lender was previously very competitive with 2nds, If not combined with a 1st, they are known as “stand alone 2nds”..

At this time,they are no longer offering 2nds.
This only applies to THIS one lender right now.

As the market contracts, rates will rise from those that still offer them.
These loan portfolios get sold off on Wall St., there were NO buyers for a strong package this week, so stop immediately.

The only guarantee is that there will be changes.

This is due to liquidity crunch on Wall Street for the secondary market.
Several hedge funds declaring bankruptcy this week have created a fear not seen in awhile.

Guidelines can change at any time, better or worse, but programs that were available Monday just aren’t available today.

[Author]

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