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Countrywide eliminating Non-Conforming Fast & Easy stated-income loans today

by Morgan on June 13, 2008

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Breaking news today from Countrywide. Effective today Countrywide wholesale will no longer offer the Non-Conforming Fast & Easy document waiver program. Fast & Easy is Countrywide’s version of stated income. Non-conforming loan amounts will no longer be eligible for stated income regardless of credit score.

This is a huge guideline change for the company that prided itself on offering jumbo loans with no income documentation in the past. The elimination of stated income loans from Countrywide should further depress home prices in expensive states where income and home prices just don’t line up.

From an internal email regarding the change:

Effective 8:00 pm (PT), Friday June 13, 2008, the Non-Conforming Fast & Easy document waiver program will no longer be available.

Guideline Impact
The following LPGs will be updated effective, June 13, 2008:
LPG 12.10 – Non Conforming Programs, Fixed Rate, Fixed Period ARMs, Short Term ARMs, Full, Alt, and Fast and Easy (sm) Documentation

Pipeline Protection

  • Loans currently in the pipeline are eligible under the old guidelines only if submitted to CAWL via CWBC or boarded in EDGE and Approved by 8:00 pm (PT) Friday, June 13.
  • Loans in the pipeline must be locked on or before June 27, 2008, and must fund/close on or before Monday, July 14, 2008.
  • Any lock extension/re-lock will be subject to current lock extension/re-lock polices, and the loan must still fund on or before Thursday, July 14, 2008.
  • If any material changes are made to a loan currently in the pipeline at any time after loan approval and prior to funding/closing, the original loan approval is no longer valid and the loan must be countered to full doc. Examples of material changes include, but are not limited to: FICO Score, Loan Amount, LTV, CLTV, Income, Employment, Assets, or Program and/or ratios.
  • Loans that are not eligible under the old guidelines are subject to the new guidelines, and must generally either be Counteroffered or Declined (as applicable).

Last 3 posts by Morgan

Related posts:

  1. Wells Fargo Considering Eliminating Stated Income
  2. Fifth Third Eliminates Stated Income Loans
  3. ING Suspends Stated Income Loans
  4. The Death of Stated Income Loans…
  5. Radian Will No Longer Insure Stated/Stated Loans

  • ann
    Well..they have all the CW people chanting now..."We must conform to BofA..We must conform to BofA..."

    More changes to come in CW..I suspect..alot more..
  • Kim Moore
    Very good news for us
  • 8bpChp
    Took them long enough to admit what the rest of the industry already knew. Liar loans don't work, no matter what the FICO is.
  • you got that right! your FICO score can't earn a paycheck and pay the
    mortgage...

    --
  • AF
    great, let's punish all the self-employed small business owners who can't document their income. Idiots. We provide jobs and can't get a loan with 20% down.
  • i agree that there needs to be some type of loan product that meets the
    needs of small business owners but overall stated income was pretty much
    abused beyond recognition

    --
    P. Morgan Brown
    Director of Marketing
    510.658.9292 x 199 | www.turnhere.com

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  • Robin
    I agree with you morganb, and I empathize with you AF. The stated loan programs were supoosed to be for people who could not document their income because they are paid full or part of their income as commission and those who are self-employed. That privilige was extended to salary/hourly wage earners, and thus the frabrications emerged: no income verfied, no job verfied, no assets verified...no mortgages paid :-( . Unfortunately, the commissioned and self-employed have mostly felt the brunt of the demise of the SISA/SIVA/NIVA/NINA, etc loan programs...it's Too bad the abusers of such a potential great loan program option has caused so many problems in this industry. Maybe a few brave lenders will come forward and help those who cannot document their income once again.
  • wow...more and more people are going to need the services of www.paymenthelp.org
  • It is a shame, small business owners have a hard time getting loans and they are the ones who need it the most to grow their business.
  • PacNW
    Ironically, you can enter a high fico borrowers info as conforming and full-doc, and all 'clues' asks for is the appraisal; CR; and verbal job (not income) verification.
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