Bank of America just sent out an announcement to all of their brokers stating that Friday will be the last day of any stated income loans or no income loans. This officially marks the beginning of the end of the stated income loan days - if BofA is making the change the rest can’t be far behind.
From Bank of America:
Expanded Criteria and Conforming Adjustment Changes
August 23, 2007
Bank of America continues to evaluate market conditions to determine necessary changes and improvements to help our products fit an ever-changing environment.
As a result, we will be making the following changes:
Expanded Criteria Products
All Expanded Criteria products will be suspended until further notice. Expanded Criteria products include, but are not limited to, Stated Income/Stated Asset, Stated Income/Verified Asset, No Income/No Asset, No Ratio and 80/20.
All Expanded Criteria pipeline applications must be locked by end of day Friday, August 24th.
Conforming Adjustments
Bank of America is also making changes to standard conforming product* adjustments for all loans locked on or after 8/27/07.
Adjustment changes include, but are not limited to:
Loans under $50,000: 500
Loans $50,001 to $100,000: 25
Credit scores under 619: 1.00
Credit scores 620 to 659: .625Additional adjustment changes include high LTV/CTV, cash-out refinances and investment properties. Please see the rate sheet on 8/27 or price your loan on Mortgage Network for details.
Thank you for your continued partnership and please contact me with any questions.
Makes you wonder how much longer Countrywide will offer stated programs…
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[Source: Blown Mortgage]
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