I guess this is kind of like reporting after the markets close, right? Or did they just have to finally let their stressed out secondary team go home for the night? Check out IndyMac eliminating some of its favorite programs such as the popular 12 MTA Pay Option loan. That was an iconic IndyMac loan - now gone the way of the dodo.
Dear Valued Customer,
In response to recent liquidity issues in the secondary mortgage market, we have found it necessary to revise a number of our program limits and underwriting guidelines. The following revisions became effective for loans that were not rate locked prior to 12:00 p.m. Pacific Time today. The Indymac Lending Guide will be updated to reflect the changes shortly.
Loans affected by the revisions below but rate locked prior to the effective date will be accepted and funded provided all QuickPricer ratelocks are converted to full e-MITS submissions by August 10, 2007 and all credit packages are delivered to Indymac by August 17, 2007. In addition, there will be no grace period or “auto-extensions” for clearance of conditions after the rate lock expiration. All loans that were previously delivered and not ratelocked are subject to the revised guidelines.
Program Revisions - Multiple Programs
The following revisions apply to the following programs, where applicable:
Alt A - Standard Products with loan amounts that exceed the current conforming loan limit
Alt A - Super Jumbo and Ultra Jumbo Program loans - all loan amounts
Alt A - Pay Option ARM loans - all loan amounts
Construction to Permanent Loans with loan amounts that exceed the current conforming
loan limit
Consumer Residential Lot Loans - all loan amounts
HELOCs - all loan amounts
Documentation Types:
Stated Income documentation is available only when one or more of the borrowers is
self-employed for loans with the following characteristics:
LTV or CLTV greater than 70% or
Decision Credit Score is less than 700
Stated Income remains available for borrowers with all types of income when the LTV &
CLTV are less than or equal to 70% and the Decision Credit Score is 700 or greater.
FastForward, No Ratio, NINA, and No Doc documentation types have been eliminated.
Maximum LTV/CLTV: For Alt A - Standard Products, the maximum LTV/CLTV is 95%. For the Lot loan program, the maximum LTV is 80%.
Minimum Decision Credit Score: A minimum Decision Credit Score of 640 is required, unless a higher score is specified in the applicable program limit table.
First Time Homebuyers:
The maximum LTV/CLTV is 90%
The minimum Decision Credit Score is 680
Not eligible for Construction to Permanent loans or Lot loans
Pay Option ARM Products: The following products have been discontinued:
12 MAT
40 Year 12 MAT
FlexPay 12 MAT 1 Year
Flex Pay 3/1 LIBOR
The Flex Pay 5/1 & 7/1 LIBOR products remain available.
For further questions, please contact your Indymac Bank sales representative.
Read More...
[Source: Blown Mortgage]
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