My Way Lending

Hi Gang,

On Saturday I’m headed to Mexico via a nice cruise from San Diego down to Mazatlan, Cabo, et al.  I’ll be gone about 10 days.  I’m trying to load up some posts in the meantime, but I would love some guest posts while I’m gone.  

I’ll open it up to any Blown Mortgage reader.  Hit me up with an email with your post and I’ll queue it up while I’m gone.  Put your name, business and a link at the bottom so you get some props for your work.  

Last year when I went on vacation I had the good fortune of having some amazing guest posts and I’m hoping that luck finds me again for this brief respite.

All submissions considered, but I of course retain final editorial control.  Thanks for caring and reading.  You guys rock.

A new web site (and organization) has launched to help spread awareness about (and their disdain for) the state-sponsored bail out of the housing and mortgage industries currently underway.  Stop the Housing Bailout is encouraging citizens to contact their congressmen and women to urge them to cease using public funds to prop up the housing asset bubble and institutions that helped get us to this point (see Bear Stearns, et al.)

From the Stop the Housing Bailout Web site:

This site is dedicated to stopping the government’s planned bailout of the housing market.   A bailout requires responsible Americans to pay for the acts of greedy bankers, mortgage brokers, flippers, and over-extended homeowners. In other words, the government wants you to pay for the blunders of others who knew, or should have known, better.

The group asks the unanswered question: Why should responsible Americans be forced to pay for the mistakes of others?

It’s a great question to be asking.  I’d especially be asking it of the Bush administration and the Obama and Clinton camps who keep proposing multi-billion dollar bail out schemes.  They are both wrong for completely different reasons.  Bush keeps pumping cash at Wall Street, who already made a killing, and Obama and Clinton want to foist cash on the homeowners which will certainly come at the expense of higher taxes, reduced public funds for things like health care and education (you know, stuff that everyone needs).

So head on over and write your congress-person.  Ask them the unanswered question - and DEMAND answers now and at election-time.  Your future is riding on their decisions.

Get it?  Wholesale and wholesale?  I kill me sometimes.  Fifth Third, a large mid-western-based bank has made some significant changes to its wholesale programs.  (h/t Chris)  You may recognize Fifth Third as the employer of Tom, one of our erstwhile contributors and frequent commenter.  These changes apply only to the wholesale channel, so I’m sure Tom can let us know if they’ve been made on the retail side of the game as well.

From the Fifth Third flyer (PDF):

Effective with Mortgage Commitments dated on or after March 31, 2008, Mortgage Insurance FICO requirements:

Expanded Approval loans – Minimum FICO has been established

· Purchase and Rate/Term Refinances 660 FICO

· Cash-out Refinances 680 FICO

Be sure to obtain Mortgage Insurance commitments prior to 3/28/08 for loans not meeting these new established FICO minimums.

Effective - April 1st Fifth Third will no longer be accepting registrations for the following products: 5/3 100, 80/20 & 75/25

All loans in the pipeline under these products must be closed/funded by April 30 ! No extensions will be granted!

Additionally, registrations for My Community and Home Possible > 97% LTV will no longer be eligible.

MI commitments for LTV?s > 97% must be obtained on or before March 31!

The interesting parts of these changes are the fact that Fannie and Freddie-backed My Community programs, which are designed to “foster homeownership” by providing 100% financing and sundry other underwriting compromises are being pared back by the banks that are supposed to facilitate this type of lending.

Further, mortgage insurance is required on any cash-out refinance for a borrower utilizing expanded-approval with less than a 680 FICO score, I imagine regardless of LTV, which is an indication of just how cautious refinance lending has become out there.  

For more on Expanded Approval loans:

Expanded Approval helps borrowers with less-than-perfect credit buy or refinance a home at a competitive interest rate. By taking a comprehensive view of the borrower’s creditworthiness Expanded Approval allows lenders to offer conventional financing to borrowers who would otherwise rely on higher-cost nonprime loans.