Comments on: Breaking: Agency SISA done at Citi wholesale

By: Cyndee Haydon

Cyndee Haydon — Sat, 22 Mar 2008 01:04:01 +0000

Morgan, The main paper today ran the doom and gloom today – interestingly almost 77% of all homes sold here meet FHA guidelines so that’s the new vehicle for property purchases. The remaining 23% are largely cash buyers and people that have equity from previous homes so maybe the sky isn’t falling yet

By: mikew

mikew — Fri, 21 Mar 2008 22:03:22 +0000

Yes the tightening continues. In my opinion FNMA should not be doing SISA loans at the same pricing as full doc anyways.

I expect that securitizations will pick up and Alt A will once again come back with a better risk based pricing strategy. The question is how long will this process take.

It really has not been that long since FNMA came out with the sisa product. I think it was something like 1999.

By: Ann

Ann — Fri, 21 Mar 2008 21:02:24 +0000

Unfortunately Toby..the mortgage market is trying to find the “hot” button that is going to energize it again..as of right now no one knows what it is..hence the continuous changes and tightening..once they figure out where the line can be drawn products will re enter the market..lets face it…certain markets will not allow a 20% downpayment because the amount would be ridiculous….but eventually the market will find the happy medium and from there things will change..however, I don’t expect that to happen until mid ‘09 early ‘10.

By: Toby

Toby — Fri, 21 Mar 2008 20:56:18 +0000

Its odd that the originators are cutting loans WAY back beyond what FNMA agrees too. Theoretically, once Desktop Underwriter (FNMA) approves a loan then that’s it. One only need meet FNMA stipulations. However, the investors (wholesalers) are cutting back even further.

Beginning April 1 there will be no M/I available on 90%+ loans in declining areas. For FNMA!! There is another hit comming on April 7 for credit scores under 740 on loans over 65%. Thats about 90% of the market.