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The retail channel of Fifth Third has just eliminated their Quick & Simple loan program (aka stated income) effective this Thursday. Thanks to reader Chris for sending this in.
The best sentence of the announcement? “Reminder: There is no guarantee that the Mortgage Insurance providers will insure these loans. All Quick & Simple loans > 80% LTV must have MI in order to close.”
As many commenters have stated throughout the changing product guidelines, the MI companies have become the “800 pound gorillas” that will control the fate of many of these products. Without companies willing to underwrite the mortgage insurance on these loans it really doesn’t matter what the banks or Fannie and Freddie do or don’t do on > 80% LTV products.
BULLETIN
CORRECTION
Announcing Quick & Simple Lending Program Being DiscontinuedTo: All Retail & Direct Mortgage Sales and Operational Personnel
Thursday, May 22, 2008.
What needs to happen to manage your pipeline:
Retail/Direct:
Quick & Simple loans with an application date after Thursday, May 22, 2008 will not be honored.Quick & Simple loans having an application date prior to Thursday, May 22, 2008 will be honored at current guidelines.
All Quick & Simple loans in the pipeline must close on or before Monday July 21, 2008.
Reminder: There is no guarantee that the Mortgage Insurance providers will insure these loans. All Quick & Simple loans > 80% LTV must have MI in order to close.
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