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Post by jeffolie on Aug 5, 2007 13:00:15 GMT -6
Product and Underwriting Changes Effective Immediately! 3-year ARM, Florida Condo Loans, Appraisal and other guideline modifications As a result of recent market changes, Option One has made necessary changes to our current suite of products and underwriting guidelines as of Friday, August 3rd, 6pm (PST). Product Changes: 3-year ARM: 3-year ARM loans in the pipeline will automatically be transitioned into 5-year ARMs at no cost to the borrower. Moving forward, the 3-year ARM will no longer be offered. This transition to the 5-year ARM provides a fixed rate for a longer period with the same 24 month prepayment penalty Florida Condos:Option One will not accept submissions secured by condos in Florida Underwriting Changes: The following Underwriting Guideline changes will be managed by your Option One production branch. They are not in our PreQual and AU engines so while you may receive an approval, if affected by the changes below, the loan will be subject to further modification until in our AU/PreQual systems: If there is no open mortgage or a rental history (verified by a non-private VOR or canceled checks), the loan will be considered an A risk grade for LTV and pricing purposes Legacy will be limited to 80% LTV/CLTV Funds available for asset verification (down payment/reserves) from a 401K will be limited to 70% of vested balance www.oomc.com/post/_marketing/phaseVII/phase7pg.htmlOption One has redlined all Florida condos regardless of the type of loan.
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Post by beachbumbob on Aug 6, 2007 14:39:00 GMT -6
the death of condo market in florida....as other lenders gotta follow
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