Loan Program Updates for the Week Beginning 3/3/2008
Program 6168 and 6169 –
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Elimination of Primary Wage Earner’s credit score for credit and pricing qualification.
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Use of the lowest middle score of all borrowers per LTV/TLTV guidelines for the qualifying credit score will now be required.
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Please review your pipeline carefully. All transactions requiring mortgage insurance (> 80% LTV) will need immediate attention as the MI companies are no longerinsuring loans where the qualifying credit score is the Primary Wage Earnerregardless of lock date.
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Elimination of Interest Only feature for all 3-4 unit properties.
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Increase in minimum credit score requirement and decrease in maximum cash-out at certain LTV/TLTV/loan amount combinations on primary residence cash-out refinance transactions and on second home transactions.
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Elimination of 85% LTV on second home cash-out transactions.
- Mortgage Insurance guidelines are changing as of March 17th.