Countrywide Tightens Further – Eliminates 3/27 ARM

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My Countrywide rep has told me that as of tomorrow Countrywide will eliminate its 3-year fixed ARM, commonly referred to as a 3/27 loan from its subprime offerings. The minimum ARM term will be 5 years with a 3 year prepayment penalty.

Countrywide eliminated the 2-year ARM just a few days ago, but continues to make changes to its subprime and HELOC and 2nd mortgage products almost daily. It recently eliminated No-Ratio and Stated Income – Stated Asset second mortgage products.

No wonder, with its devastating earnings report earlier today.

In other, related news, we just received the new Long Beach Mortgage rate sheet (Washington Mutual’s subprime business unit) and it is small! No stated matrix, just full document, minimum credit scores are now 540 (up from 500) and 5-year ARMs are the minimum loan terms.

UPDATE: Impac has also announced the suspension of the 2/28 and 3/27 ARM programs, as well as Condotel lending products (Condotel’s can’t look too appealing these days).

The times they are a changin’!