Comments on: Bank Updates – Program Revisions from Top Lenders

By: Countrywide Tightens Further - Eliminates 3/27 ARM at Blown Mortgage

Countrywide Tightens Further - Eliminates 3/27 ARM at Blown Mortgage — Tue, 24 Jul 2007 22:46:20 +0000

[...] Countrywide eliminated the 2-year ARM just a few days ago, but continues to make changes to its subprime and HELOC products almost daily.Â Â No wonder, with its devastating earnings report earlier today. [...]

By: Morgan Brown

Morgan Brown — Tue, 24 Jul 2007 22:39:53 +0000

Dan – you are right on.

Today’s update: Countrywide eliminates the 3-year fixed subprime loan. Shortest ARM is now 5 years.

By: Dan Green

Dan Green — Tue, 24 Jul 2007 14:06:34 +0000

Because these are the biggest sub-prime players, it won’t be long before all the other follow suit.

By: Morgan Brown

Morgan Brown — Tue, 24 Jul 2007 05:24:10 +0000

Wells Fargo just got with the program and dumped the subprime 2/28 as well 7/23.

By: Morgan Brown

Morgan Brown — Sat, 21 Jul 2007 04:25:33 +0000

I definitely wouldn’t want to be giving out 100% – unless I liked the sound of jingle mail.

By: Tike

Tike — Fri, 20 Jul 2007 23:57:50 +0000

Would you want to loan 100% LTV in a declining market? I sure wouldn’t.

By: Morgan Brown

Morgan Brown — Fri, 20 Jul 2007 16:18:58 +0000

PJ – I agree, the Alt-A players are coming under extreme duress and the 100% financing is disappearing. Russ – you may be right that it is an over-reaction but there is so much uncertainty in the market right now in terms of value, liquidity, etc. that there is little appetite for 100% out there.

To get 100% right now you pretty much have to be at 720 FICO and above to have access to it – and its getting very expensive.

By: Russ

Russ — Fri, 20 Jul 2007 15:39:39 +0000

It is getting harder and harder for A paper borrowers to get 100% financing. Seems like all the good second mortgage lenders are cutting off 100% CLTVs – Chase, National City, etc. Personally, I think this is an over reaction though.

The market is moving fast to eliminate the stated stuff, but state legislatures are moving even faster by just making stated programs illegal… we are licensed in Minnesota and all the lenders are sending out bulletins elimating stated programs due to that states recent passage of a bill going into effect August 1st.

By: P. Jackson

P. Jackson — Fri, 20 Jul 2007 14:11:23 +0000

No news on subprime ARMs dropping, but how about an huge Alt-A lender, say IndyMac, doing away with all 80/20s? That strikes me as an even more telling move.