100% financing for NOO on the way out???

FYI,

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

in my recent discussion with several lenders, Int. Only options for investment properties are starting to get more expensive and not nearly as attractive as they were a few years ago.

Also some lenders are pushing there priciing points to 25% down to get the best rate. This really kills the ROI. :stuck_out_tongue:

I foresee this trend continuing as this market settles out.

I appologize for the simple question but Im having a brain fart? what does NOO mean?

Come on Campbell…you have to stop looking at all the hot woman on the beach in FL…(LOL)

NOO- no owner occuppied…

You mentioned Lehman Brothers, I spoke to a broker friend of mine that uses them and he never heard of that, he even called his AE and said he didnt know about this…humm…wonder who is lying…maybe a pressure sale by your broker…

But remember when 1 broker says no, its time to goto the next.

I am a broker. I copied in the email sent from the AE at Aurora. Never used them but thought it may need attention. There are plenty of 100% lenders but this list will narrow if wallstreet is putting on the breaks for these products.

having one of those days…what girls?he he he

Wait a min. I have not seen a loan available in my area that allows 100% NOO.90%max?