Where did all the lenders products go? Is this mess because of AHM/ABC filing BK or what? I literally couldn't lock yesterday because Aegis' online system was malfunctioning and today the damn loan is gone.

It's scary, Adam. We will really have to shop, shop, shop for those loans. Guidelines are virtually changing by the hour.
Buckle Up and hold on 'cause the ride is going to get bumpier.

Very good post on this in the Broker Outpost today

http://www.brokeroutpost.com/loans/brokers/forum/topic.asp?TOPIC_ID=148804&SearchTerms=rep

A liquidity crisis - meaning many lenders simply don't have the money available to fund loans.

Guidelines have become more of a moving target than Osama Bin Ladin.

What a week it's been in the lending world.

I priced out a deal with auroa today:

620 FICO 100% Refi SIVA
12.25 % costing you 1.25

700 FICO 100% Purchase Full Doc
16.25 at PAR

HOLLY [censored]!!!!!!!!!!

It's getting worse than hard money.

All these lenders are going BELLY UP

the market is horrid. Hey atleast it is time to pick up foreclosures. What you think?

Well, I just priced

685 FICO
95% LTV
Cash out Refi
SIVA

8.95% IO 5/6 ARM with 1 back

The worst part is that the bank won't let us lock until we get a final approval. WTF is that?

I was on a 7.50 1st and 12.375% 2nd. The payment went up 300 bucks, but I think we need to take what we can get right now.

LOL

12% will be the norm on this types of loans for at least another year or two.

We are back to 1998 pricing. The secondary market does not what the high LTV stuff.

Good Luck. Put your hard hat on.

Flagstar is still amazing. I think they shield themselves from most of the pain because they lend their own money and make their own guidelines.

I just can't believe how quickly this changed though. Was this spurred by a specific event? AHM/ABC shutting down, or just general investor skiddishness (not sure if that's a word)?

Adam,

I feel your pain, I have had a 1.3 million dollar refi get bounced and the borrower met all the guidelines for siva (the guidelines are posted on the lenders website). the investor on wall street now says that they want to see full dox for this guy. Bear in mind that he is a self employed borrower (owns 2 different companies) and his wife is self employed. The low credit score is 729!.....not like they dont pay the bills on time as agreed. And as a kicker the ltv is 35%!!!!!.....
All I know is that for the Alt A programs, just be prepared to have your deals be counter offered and/or denied on a regular basis until the credit market stabalizes on wall street.
What I would recommend is that you famalirize yourself with your lenders that have portfolio products (they don't sell these to wall street, they service the loans themselves). Two that come to mind are Wachovia (used to be World Savings), and Greenpoint Mortgage.

What bank was this adam>?

Stated and Alt-A programs are disappearing faster than a dress on prom night. I keep getting flooded with First Magnus updates. Taylor Bean and Whitaker has pretty much done away with Alt-A, so has Natioanal City. Top that off with Fieldstone going belly up, and Novastar on the brink and it's officially a s**t week.

I read yesterday that Wachovia stopped all alt-a yesterday. Greenpoint has been struggling for a while.

The bank I was referring to was Flagstar. They launched a high LTV Alt-A program last week. Normally I would say bad foresight, but they did the same thing before the subprime collapse. It was almost like they knew what was going to happen before it did and wanted to catch all the fallouts. Their Subprime and Alt-A is not the hottest rate on the block, but it's there and that is what counts right now.

For more news check out Lenderimplode.com and be sure and donate so they don't get shut down!

PS- Flagstar is a portfolio lender.

Prodigy,

not to get into a pissing contest, but I also do a lot of business with Flagstar and I think that they are a tremendous company, but I was unaware that they are a portfolio lender. Since they base all their underwriting guidelines on either fnma or freddie mac. This tells me that they sell their notes on the secondary market and the notes are insured by the GSE's.
So I called Flagstar and they will on a case by case basis hold onto fnma's 30 year fix product, but only on a case by case basis and they can sell it at anytime.

Absolutely, you are right. Don't worry, after a day (or days) like this we need to band together and help each other, not get into a pissing contest.

Maybe I used the term incorrectly, I know they service a lot of their loans. If you log on to their website you can see an add for their customer for life program. Read up and you can tell they keep a lot of paper, probably not a majority, but enough to offer that program. They service a lot and don't sell all their loans on the secondary market, that is what I meant. Sorry for any confusion.

BTW, can you confirm that Wachovia is out of the Alt-A game? Also, how is Greenpoint pricing? I haven't used them in a long time. Last I talked with them I priced a commercial loan.

One other interesting point, maybe some of you more experienced brokers can verify this, are you seeing significantly better pricing/programs with lenders that are also banks?

Indymac- also a bank
Flagstar- also a bank
Wachovia- also a bank

Just curious, I read a letter from the CEO talking about the reason they will continue to be a big player because of the fact they are also a bank/federal savings and loan. Any comments?