IndyMac Makes Drastic Changes to Loan Programs (updated)

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With apologies to the Beatles:

Yesterday, making rebate was a game to play.
Now it looks like it has gone away.
Oh, I believe in yesterday.

Suddenly, my fees are half of what they used to be,
Regulation’s hanging over me,
Oh, my job left so suddenly.

Why fees had to go, I don’t know they wouldn’t say.
I did something wrong, now I long for yesterday.

Yesterday, loans were such an easy game to play,
Now I can’t find a sucker to pay,
Oh, I believe in yesterday.

Why neg-ams had to go, I don’t know they wouldn’t say.
We did something wrong, now we long for yesterday.

Yesterday, refi’s were such an easy game to play,
Now I need a new job today,
Oh, I would kill for yes-ter-day.

Hat tip M for sending this one along from IndyMac:

Update (added these changes from IndyMac):

Major guideline changes just announced:

*       No Ratio and NINA has been eliminated on all products.
*       Stated income on jumbo is now limited to 75% max LTV.
*       Hybrid Option Arm is gone again.
*       The lot loan program has been discontinued.
*       Expanded approvals on Agency Conforming will be limited to 75% max LTV.

No extensions will be allowed on any discontinued products. These loans must close by the original lock period.

PLEASE read and note important changes:

Secondary markets have tightened up again.

Effective immediately:

Pricing Update:

The maximum price for Alt- A Jumbo, Alt-A Jumbo No MI and FlexPay Hybrid Option ARMs has been limited to 99.00 for all scenarios. That is correct, a one point borrower cost to fund these specific loan products.

One point borrower cost for all alt-a jumbo loans and option ARMs. And that’s the best pricing! So much for rebate on those bad boys. I wrote an ode to the death of the option ARM awhile back and I think this is probably the nail in the coffin for wide-spread option ARM abuse. I can just hear borrowers now “So I have to pay a point to the bank and a point to you for this loan?” Good luck with that one.

Update: So IndyMac cans NINA loans, and maxes Stated out at 75%. Plus kills the hybrid option arm. What’s next??? No I/O? I’m expecting the following announcement shortly:

30-year fixed fully amortized loans for everyone (with a credit score north of 700) or no soup for you!