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?

Just got em from Citi saying they are still doing Alt-A.

Good to know! I just logged in to their Home Equity site. They have an announcement but the programs still seems great, except the CLTV only goes to 95% Full and 90% Stated. Rates are still smokin' though!

GB Home Equity still goes to 100%CLTV, and I think National City Home Equity still does too.

I received this email from National City;

"Good Morning,
Due to market conditions, the following changes are effective immediately. We will be sending out updated information as it is released. Please call your account executive if you have any questions on the following changes or on Programs and Pricing.

* The following programs have also been discontinued effective immediately:
* All Expanded Criteria Programs
* Payment Option ARM
* Non-Conforming Products - Stated (full doc are still accepted)
* We have discontinued Stand Alone Seconds. We still offer Great Pricing on our First Mortgages and accept Piggyback 2nds (full Doc, CLTV to 90%, Fico >700)
* We will also be introducing conference calls on all construction loans. This will help your borrower and builder as they begin the construction process.

* Please check out our rate sheets today on our website: http://www.goncm.com/tacoma (username: ncmwbtacoma / password: puget2).


National City still offers Conforming, Government, Piggyback Seconds and Non Conforming products and a knowledgeable staff to help you fund your loans. Call your Account Executive today for more information!
National City Mortgage
A Division of National City Bank
15 Oregon Ave, Suite 200
Tacoma, WA 98409
Office (253) 475-2899
Fax (253) 475-2679
http://www.goncm.com/tacoma"

We need some kind of real time ticker to keep up with the em updates from various lenders . . .

Seriously, I get that National City email from my Plaza Account Executive saying "Send me anything of your that falls out!" Next email is his company's "Updates"...

LOL, don't you know that AEs are the last people to find out anything in this business. I've read more than one story where the AE found out he was out of a job from an LO.
National City Home Equity is a seperate divisiion of National City. They are still going strong....as of Friday anyway.

The word I got from my Aegis rep is that nationwide, all lenders are pulling the plug on Stated Investor deals. They won't even honor previous locks. Some of my heavy hitters are seriously hosed.

Oh, and to answer the question at the start of the thread you need to look to Wall St. The big money boys can't sell any of these loans on the market. No one is buying at any price they can offer them at as a package. Therefore they suspended trading on many funds. It is a total liquidity problem for this sector of the market.

Did you see the 10 year note on Friday? Yield dropped like a rock.

Yes, 60 something points

Any predictions on what the Feds do Tues?

I've heard commentary both ways. My personal opinion is that they will stick with what they have been doing. This mess really started 2 weeks ago, and that is much shorter than needed to analyze what is going on to change something as major the Fed Funds Rate. Monetary policy is not something that is easily swayed. I think this is some necessary pain.

When you think about doing a 100% loan, to a lender that is more like a 105%-110% loan carrying a much higher risk value. The way property values are declining I can't blame the lenders. All of the 100% programs will return as soon as we level off in the market.

Also, a heads up to the construction/lot lenders out there, Indymac has cut the max LTV to 80% from 90%.

I agree with Prodigy. The feds won't do anything to the rate just yet, as this mess has really nothing to do with rates. It has to do with foreclosures and Wall Streets lack of interest in buying high risk loans. I don't blame them either.
We need to get back to a point where the borrower has some vested interest in the property they are buying. I don't think it's unreasonable to ask them to come to the table with 5-10%. If they can't afford that, I don't know if they should be buying then. What's more, 3 months of PITI is becomming standard, and I think it's a great idea. This means they will be less likely to up and walk away when times get tough. I also think it's a good idea that most lenders are doing away with 2 and 3 year arms. Now, if we can only get them to drop prepayment penalties so people won't be penalized to refi into a better rate.

National City cut stated construction loans. I haven't heard anything about First Horizon or Bizmark yet.
It's going to get worse before it gets better. Wall Street still has a couple notches on their belt left to tighten...

National City cut their stated construction line altogether? Wow... I agree that the minimum reserves of three months would be great. If you are buying a house without 6-8k in the bank, what are you doing?

I don't agree with the 2 and 3 year ARMs going away. I think they will become far less popular due to the pricing being so much better on the 5 year fixed.

Great... So much for my ace up the sleeve..

Due to the volatility in today’s market, Flagstar Bank will be making the following changes to our programs.
PROGRAMS SUSPENDED
Effective Friday, August 10, 2007, Flagstar Bank will be suspending the following programs.
􀂾 Stand Alone Second Mortgage (Doc. #5551).
􀂾 Stand Alone Home Equity Line of Credit (HELOC) (Doc. #5557).
􀂾 DealMaker Program (Doc. #5511).
STAND ALONE SECOND MORTGAGE AND HELOC
Effective Friday, August 10, 2007, we will be suspending all Stand Alone Second Mortgage and HELOCs. Any loans currently in the pipeline must be locked by 5:00 EST Friday, August 17, 2007. Loans cannot be locked on-line. Loans must be locked by calling the Marketing Department at 1-800-93-RATES. Loans must close and disburse within lock period. Normal delivery deadlines will apply for correspondents after closing.
DEALMAKER PROGRAM
Effective Friday, August 10, 2007, we will be suspending the DealMaker Program. All loans must be locked no later than 5:00 EST Friday, August 10, 2007. Lock period cannot exceed 30 days. Loans must close and disburse within lock period. Normal delivery deadlines will apply for correspondents after closing.
OPTION POWER ARM PROGRAM SUSPENDED
Effective Friday, August 17, 2007, we will be suspending the Option Power ARM Program (Doc. #5405). All loans must be locked no later than 5:00 EST Friday, August 17, 2007. Lock period cannot exceed 30 days. Loans must close and disburse within lock period. Normal delivery deadlines will apply for correspondents after closing.
LOAN AMOUNT REDUCED
Effective Friday, August 10, 2007, the maximum loan amount will be reduced to $1.5M on the following programs:
􀂾 Advantage Select ARM (Doc. #5404-A).
􀂾 Advantage Select Fixed (Doc. #5404-F).
􀂾 Option Power ARM (Doc. #5405).
􀂾 Steady option ARM (Doc. #5406).
To: All Flagstar Bank Wholesale Lending Customers
From: Wholesale Lending
Subject: Home Equity Line of Credit; Second Mortgage Program; DealMaker Program; Option Power
Arm Program Suspended; Maximum loan amount reduced on Jumbo loans; Pricing
Adjustments
Date: 8/8/07
Memo #: 07127
Loans currently in the pipeline must be locked no later than 5:00 EST Friday, August 10, 2007, with lock periods not to exceed 30 days. Loans must close and disburse within lock period. Normal delivery deadlines will apply for correspondents after closing.
Product descriptions will be updated and posted as soon as possible.
STATED INCOME STATED ASSET (SISA) DOC TYPE REMOVED
Effective Friday, August 17, 2007, we will be removing the SISA doc type from all products, with the exception of the Conforming Stated Income Stated Asset Program (Doc. #5333). The following products will be affected:
􀂾 Advantage Select ARM (Doc. #5404-A).
􀂾 Advantage Select Fixed (Doc. #5404-F).
􀂾 Steady Option ARM (Doc. #5406).
􀂾 Bridge Loan (Doc. #5608).
􀂾 Second Mortgage (Doc. #5551).
􀂾 Home Equity Line of Credit (HELOC) (Doc. #5557).
All loans with a SISA doc type must be locked no later than 5:00 EST Friday, August 17, 2007. Lock period cannot exceed 30 days. Loans must close and disburse within lock period. Normal delivery deadlines will apply for correspondents after closing.
The Conforming Stated Income Stated Asset Program (Doc. #5333) is not affected by this change. This program is still available.
PRICING ADJUSTMENTS
The following adjustments will appear on the ratesheet Friday, August 10, 2007.
75/25 Option (Doc. #5323)
Adjustment Name
Old Adjustment
New Adjustment
FICO 680-719
N/A
-0.500
FICO >=720
N/A
-0.250
Advantage Select (Doc. #5404-F, #5404-A) and Steady Option ARMs (Doc. #5406)
Adjustment Name
Old Adjustment
New Adjustment
$1,000,001 - $1,500,000
FICO < 720 subtract 0.375 from price
FICO < 720 subtract 0.75 from price
FICO >=720 subtract 0.25 from price
To: All Flagstar Bank Wholesale Lending Customers
From: Wholesale Lending
Subject: Home Equity Line of Credit; Second Mortgage Program; DealMaker Program; Option Power
Arm Program Suspended; Maximum loan amount reduced on Jumbo loans; Pricing
Adjustments
Date: 8/8/07
Memo #: 07127
Second Mortgage (Doc. #5551)
Adjustment Name
Old Adjustment
New Adjustment
SIVA/NIV CLTV < 80%
+0.375%
+0.500%
SIVA/NIV CLTV >= 80%
+0.500%
+0.625%
The following adjustments will appear on the ratesheet Friday, August 17, 2007.
Conforming Low Doc (Doc. #5302)
Doc Type
FICO
LTV
Old Adjustment
New Adjustment
SIVA/NIV
700+
70.01-75
-0.875
-1.125
SIVA/NIV
700+
75.01-90
-1.625
-1.875
SIVA/NIV
700+
90.01-95
-1.875
-2.500
SIVA/NIV
660-699
70.01-75
-1.375
-1.625
SIVA/NIV
660-699
75.01-90
-2.000
-2.250
NIVA
700+
70.01-75
-1.125
-1.500
NIVA
700+
75.01-90
-2.000
-2.375
NIVA
700+
90.01-95
-2.750
-3.500
NIVA
660-699
70.01-75
-1.500
-1.875
NIVA
660-699
75.01-90
-2.375
-2.750
NINA
720+
70.01-75
-1.500
-2.000
NINA
720+
75.01-80
-2.500
-3.000
Lender Paid MI
Non-Conforming 30, 35, 40Y Fixed and 5/6, 7/6 ARMs
LTV
Doc Type
FICO
Old Adjustment
New Adjustment
<=85%
Stated
680-699
-1.210
-1.560
<=85%
Stated
700+
-0.950
-1.100
85.01-90%
Stated
680-699
-2.010
-2.360
85.01-90%
Stated
700+
-1.380
-1.530
90.01-95%
Stated
680-699
-3.050
-3.400
90.01-95%
Stated
700+
-1.990
-2.140
Non-Conforming 10, 15, 20, and 25Y Fixed
LTV
Doc Type
FICO
Old Adjustment
New Adjustment
<=85%
Stated
680-699
-0.880
-1.230
<=85%
Stated
700+
-0.620
-0.770
85.01-90%
Stated
680-699
-1.680
-2.030
85.01-90%
Stated
700+
-1.050
-1.200
90.01-95%
Stated
680-699
-2.720
-3.070
90.01-95%
Stated
700+
-1.660
-1.810
To: All Flagstar Bank Wholesale Lending Customers
From: Wholesale Lending
Subject: Home Equity Line of Credit; Second Mortgage Program; DealMaker Program; Option Power
Arm Program Suspended; Maximum loan amount reduced on Jumbo loans; Pricing
Adjustments
Date: 8/8/07
Memo #: 07127
Non-Conforming 1Y, 2Y and 3Y ARMs
LTV
Doc Type
FICO
Old Adjustment
New Adjustment
<=85%
Stated
680-699
-1.320
-1.670
<=85%
Stated
700+
-1.010
-1.160
85.01-90%
Stated
680-699
-2.300
-2.650
85.01-90%
Stated
700+
-1.560
-1.710
90.01-95%
Stated
680-699
-3.560
-3.910
90.01-95%
Stated
700+
-2.280
-2.430
For more information about specific products, please refer to the Flagstar Bank Seller’s Guide available at wholesale.flagstar.com

Hey Prodigy,

I just found this thread. I agree. Flagstar is top notch. Especially the fannie mae SISA 30yr fixed. No hits for qualified borrowers.

Yup, but things are changing quick. I'm not even sure if they are still offering that product now.

The industry is Falling! The industry is Falling! Every day is getting harder. One good thing for me unfortunatly is that many realtors that i was trying to work with used home banc as 1st pick and now they dont exist. But over all this is sad for us all. I have heard about so many peoples piplines desolve because of whats going on. I am try to brace for this Storm but i may need a better umberella.