I was working about four loans right now and I am just appalled at how great the rates have gotten last week!

Borrower #1: Purchase, Owner Occ, 80% LTV 790'ish mid and good reserves. 5.500% 5/1 ARM 10 year IO or 30/30 5.875% @ par.

Borrower #2: Purchase, INVESTOR, 90% LTV 680'ish mid and low reserves, but great DTI, 6.875% 30/30 with 1% in YSP.

The other two are similar. Gosh it is good to be back to the heights of this year in bond pricing. We gained nearly 100 basis points just last week!

Kind of off topic, but doesn't it feel good to wipe the floor with these builder LO's? I love it when they try really hard and I feint defeat just to come back and knock them on their arse!

Also, anyone know of a lender that will lend on land/construction in a corporations name? Indy used to, but they don't anymore.

"The POWER, the absolute POOWWEERR!!"

Hi,

who did you get for 90% LTV Investor ?

Thanks,

That my friend is a closely guarded secret... Just kidding, Flagstar Bank.

I came across this lender the other day while searching for someone with no cap on properties owned. Their buydowns were .125 for each .125. I managed to get a 678 mid on 8 NOO properties 6.125 IO at a 1.5 cost. Not a bad deal.

They are my favorite. I am also a correspondent so I get even better rates. Their regular wholesale is damn near unbeatable, imagine taking another .50% off that!

Woo, from "Go" last night to docs drawn on Friday, Flagstar is so awesome. I just hope they are still funding in that part of So-Cal. A lot of lenders have stopped funding in So-Cal altogether.

Prodigy,

I am set up with Flagstar but have never worked with them.
I have heard from others as well that they are good.

Their pricing is pretty good not great. I am wholesale not correspondent so this could be why.

I am thinking of going correspondent though. And i am looking for the best correspondent lenders.
Who else are you correspondent? And where are you seeing your best pricing.

Thanks,

Indy, and a few others that went BK...

lol

I know what you mean.

thanks

lol

I know what you mean. check out Lydian mortgage.
There Arm pricing is great!!! I have not done business with them either. but it looks like I might give them a whirl.


thanks

Can they beat a 5.500% matching the criteria above with .178 back in rebate? If they can I will be approved by weeks end. Actually, I just priced and they are a little better... hmmm... kinda makes you think. They can't be as fast as Flagstar though. They have a great paperless system. Look at me stickin up for a lender. I can't help it though, I have had a good experience with them.

Wait a second, they have some weird price adjustments.

Between an Escrow waiver and Ca property hits totaling .375% I would smoke them with Flagstar. I guess each has their strong suit huh? They seem to do really well with Jumbo loans.

I just took a look @ flagstars arm pricing. It's freakin strong.
There pricing is wierd though.

There par price is very good but as you go up in rate the YSP is not as strong as most though. I am talking about fixed rates now.

You get 50bps better to price than wholesale on the correspondent channel? If so that is awesome. I guess I need to look into them a little harder.

Thanks for the follow up I see what you mean.

Stupid freakin builders! They told my borrower that they would not honor the closing costs if he went with me instead of their own lender. Doesn't this sound like a RESPA violation? The builder, Centex, owns the title, escrow, and lending company. I am pretty pi$$ed off right now.

Ditto on Flagstar. They are my #1 correspondent as well.

Anyone have a line on 100% financing, conforming full doc, california right now for an o/o purchase since we are talking about great programs/rates here?

Are you looking for Jumbo or within Conforming Loan Limits?

Conforming loan limit, California, full doc, 750+ fico. I keep getting cut 5% due to the soft market. Had an approval with wamu, from about a month and a half ago while they were shopping for a home, they are moving it up the ladder to see if they will still honor it at 100%, but I'm not optimistic, would really like to have a backup plan!

What county is the property in? I have a few idea's.

It's in Contra Costa. I actually found a home, Wells will do it as long as the appraiser does not denote it being in a declining market. They will do it on the freddie mac "home possible" program. Just have to make sure the home they select is not located in a hotbed of foreclosures. Have my wife working with them to find a home, and there are pockets out here that are still stable. They just have to select a home in a stable enough area to make it fly.

If you have another idea, however, I'm all ears. The appraisal will be reviewed, and there is always the potential for them to come back and chop me 5%. Let me know your ideas, I would appreciate it!

When you ran DU for Fannie Mae did DU show it in a declining market? If not the same rule as Wells would apply to any Agency program at Flagstar Bank.

Let me define it by using a cut/paste of their policy:



So, this expands the product lines of Fannie Mae back into your offer.
Flex 97 & 100
MCM 97 & 100
Standard Agency
Agency SIVA
Agency SISA

That's great, I like Flagstar more than I like Wells. I will give them a ring in the morning and see what they have to say. I can't believe I didn't run it by them!

I talked with Flagstar today, they do have declining markets by county marked for an LTV cut, Contra Costa being one of them, no 100%. So far, Wells is all I've found!

I have heard rumors of a USDA loan that will go to 102% in certain cities that match their parameters. Gotta think creative in a market like this.

cgoulart, the memo explains how it works. If you login to their site and read the 4 or 5 memo's regarding declining markets you will see what Flagstar can and cannot do.

I am jumping onto a soap box for a second. We as loan officers rely too much on what other people tell us. If you read guidelines like and underwriter you will know exactly what to expect on your loans. When your 1 yr in the business account rep tells you we can do it and you submit the deal to find out they cannot.... Or, you call some customer service rep paid 10 bucks an hour.... Take complete control of your loan!

cgoulart this is not directed at you. It is a general statement.

I said that Contra Costa is on the declining markets list. Then I cut/pasted the memo that is Flagstars policy. If your property meets both requirements in the memo known as a. and b. the declining market cut can be lifted.

So, I would try to pull that memo, call back, and tell them the way you and I read it.

Adam,
Yes, but they charge a 2% fee. So, it is 100% financing. There are geographical requirements and income restrictions.

The best thing about USDA is if you have a 620 score you are approved. USDA Stremeline

You could be 1 day out of foreclosure or bankruptcy. You do not need to explain and derogatory credit nor pay it off.

The 2% is for pre-paid MI though so you don't have to worry about that at least. The income restrictions are fairly reasonable though, 120% of the median income for the area.

Thank you, I will see if I can make it fly.

Don't get me wrong though. The lenders are tightening by the day.

They released a new memo about declining markets I have not read yet. Make sure and go in the memo's section and read some of their changes.


2% is a Guarantee Fee.. There is no PMI on USDA.