The secondary market for high ltv 2nd mortgages may be dissolving. I’ve had several lenders tell me they have disconitued their products. Take a look at the email from one of them.
LOAN PROGRAM TO BE DISCONTINUED!
PLEASE SHARE WITH ALL IN YOUR OFFICE!
This applies to the following ONLY:
100% CLTV NOO 1-4 Family Transactions
100% CLTV OO 3-4 Family Transactions
The Mortgage Maker and ALT-A will discontinue allowing CLTVs of 100% as of February 24, 2006.
After 2/24/2006, the maximum allowed under the Mortgage Maker and ALT-A programs will be 90% CLTV for the above listed transactions.
Why?
Lehman Brothers, parent company of Aurora, has found that there is no appetite for these types of loans on Wall Street. The investors who normally buy our paper are no longer interested in this type of paper. Every lender that sells their loans to Aurora/Lehman Brothers will be affected.
What do you need to do?
Lock your loans quickly! If you are working with borrowers interested in 100%, get them off the fence! You will be able to lock these loans until 5pm local time on 2/24. I will not be able to grant any exceptions afterward. Once your files are locked, lock extensions will not be granted
There are still a number of investors like, Aegis, Credit Suisse and World Savings that are still not shying away from these type products. The paper will never disappear things are just going back to normal. Back in the day only a few lenders had these products and made thier investors a lot of money with them. Rates droped and a large number of lenders jumped on the gravey train…Yawn.
Weak lenders, brokers and buyers are on their way out…that just means more for the strong. ;D
You should concentrate on the programs that are on the way in…
If you can’t offer 100% financing NOO then you’re list of lenders is slacking. There are plenty of investors that still offer the product…
Although Lehman Brothers/ Aurora does take alot of high risk investment paper, they are not the only source of this type of risk. The market is much larger than you ever imagined.
If you are relying on Lehman Brothers / Aurora to determine your loan products, then yes you will be affected… however, as every bank goes through change there seems to always be another avenue, another lending insitution that will take on that risk…
Just remember, you don’t have every lender at your disposal… although you may think you do.
I do like your propaganda here though. It seems like you may need to switch mortgage companies again… if you’re going to find more alternatives for the investment market.
This thread almost sounds like we are going to war.
do like your propaganda here though. It seems like you may need to switch mortgage companies again... if you're going to find more alternatives for the investment market.
It seems like all He has done recently is push propaganda and not back up statements that he makes.
I believe that you work with the tools that you have. If the quit doing a certian type of loans then move on to something or somebody else.
Don’t mislead clients/potential clients just to get the deal. Be honest. I believe I have created more lifetime clients with honesty than with telling them that I can do something that I can’t.
Come’n little guy. Just cuzzed ya moved states doesnt mean ya can lip off to people now, huh?
I’ve got plenty of lenders that will do 100%. The post was made as a notice for the convenience of those that might be doing business with Aurora or it’s megabrokers sending business to them.
With the stucture that Cartet has you’ll never turn me over to the darkside. Slow pay, state licensing issues to name a few.
War, hey? Well, hope things are going well out in CA? Where’s my invite?
If you have plenty of lenders that will do 100%, then why are you advertising that your lender that offers the 100% program is going away?
As for Carteret, well we don’t have slow pay. We get paid as soon as the loan closes just like everybody else. Unless, you violate RESPA. Well, as you know, if you don’t comply with RESPA, yes you will have problems getting paid… maybe that’s why you don’t work for Carteret… We are very compliant with Lending Laws nationwide which does require attention to detail…
With respects to state licensing issues… I’m not sure what you are talking about here. We have over 2,000 loan officers working nationwide. State Licensing issues? In order to obtain state licenses, you must comply with state requirements… Each state has there own set of governing laws setting a certain amount of education and a fee for licensing. If you are aware of some sort of licensing issues within your own structure please let me know as we are unaware of what you are referring to.
First,
I havent used Aurora in years. Underwriting to shakey and a little slow. Like I said, I put it out there because it seemed like important info.
Second,
The information from Cartet came straight from your lips when I was looking to move my book of business and was confirmed by some of your previous coworkers and manager.
Third,
I do have a little secret about licensing. All States. No licenses required. Interested lil buddy?
Your little secret about nationwide licensing is one of fraud. You as a loan officer have to be licensed individually in many states. Check your state by state laws.
So, are you telling me that you operate without state licensing? Seems illegal. that’s why you’re not working with Carteret. We also have background checks.
Next thing you’ll be telling me is that you don’t have to have a realtors license either, but you can be a realtor nationwide.
Also, making up false statements isn’t good either.
Naa, I don’t see any reason to carry on. you do things illegally. It’s clear.
It comes down to simple ethics really.
On the third page of the application as you sign as the loan officer, loan originator, you are required to be properly licensed in the state from which you originate, you know that.
Unless you are acting as a bank, but then if you are brokering out the loan, you still need the proper licensing.
If you have plenty of lenders that will do 100%, then why are you advertising that your lender that offers the 100% program is going away?
I would like to know the answer to that one my self. Ben you started this debate on another thread. You made statements that you were asked to verify/prove and have yet to respond to anyone.
You’re right on the money now bro. Like I said, you should call about that bank thing.
And yes, you will appologize if you’re man enough to admit you misunderstood the post or didnt have all the facts before you went libeling. Our integrity and business ethics are all we have since most of us as brokers have access to the same programs and rates.
You seem somewhat confused. You’re not a banker. You’re a broker.
and you still need the proper licensing… if your name goes on the 1003…
the fact maybe that you work for a company whose structure is as a bank, but that is simply an illusion to the fact that you are actually brokering out your paper…
nontheless, you as an individual without the proper state licensing know that you are looping through laws to get around the requirements set by individual states…
and this is exactly why state originating laws are getting more and more defined…
Are you not the loan officer / originator of the loan? Are you not brokering to other banks?
and this is part of the very framework of why our residential mortgage industry is being attacked from individual states… they do not want people originating mortgage loans without the proper licensing… no matter how you cloud it.
I don’t make the laws. the states do.
either way… it’s only a matter of time before you’ll need to get the proper licensing to orginate…
I am looking for lenders that will offer 100% loans. Currently, the best rate I’m getting is a 3 year ARM for 7.5%. Credit score is 725…any suggestions for lenders I should call?