Andres814
460 Posts |
 Posted - 11/29/2007 : 2:25:53 PM
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In response to agency pricing changes, we are taking proactive steps to ensure
our clients have enough notice to make adjustments to their pipeline and
understand the changes so there are no surprises.
Click here for a link to the agency announcement.
Expiration Date Subordinate Financing 2-4 Unit Properties Standard ARM
Pricing Changes & Lock Expiration Date
The new Price Adjustment Factors (PAFs) below will be reflective of a loan's
lock expiration date in addition to the original lock date for the following
loan programs:
Conforming Fixed Core (loans with 20 - 30-year term only)
7-Year Balloon
These new PAFs do not apply to Expanded Approval (EA) all levels, EA with
Timely Payment Rewards (TPR), MyCommunityMortgageTM and Conforming Fixed Low
Documentation.
Locked on or after 11.30.07 and a Lock Expiration date on or before 01.08.08
PAFs reflective of the original lock date.
Locked on or after 11.30.07 and a Lock Expiration date after 01.08.08
The following PAFs for LTVs of 70.01% and above, with "representative" FICO
scores will apply:
Credit Score
PAF
Below 620
(or missing credit score) -2.000
620 - 639 -1.750
640 - 659 -1.250
660 - 679 -0.750
Anticipated Questions
What if must extend my lock past 01.08.08 or I have to relock after 01.08.08,
will the new PAFs apply?
Yes. Any loan funding after 01.08.08 regardless of lock expiration date will
incur the new PAFs.
I have a refinance scheduled to close on 01.07.08, but it will not fund until
01.10.08, is it subject to the new PAFs?
Yes, even loans requiring a three day rescission will be subject to the new
PAFs if the funding date is after 01.08.08.
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Effective immediately, the following changes will apply to loans locked on or
after 11.30.07, regardless of lock expiration date.
Subordinate Financing
Updated PAFs for loans with subordinate financing (both AmTrust-held and
outside seconds) will be as indicated below for the following loan programs:
Conforming Fixed Core
Conforming Fixed Low Documentation
Standard ARM
Expanded Approval
Portfolio Fixed (conforming loan amounts only)
7-Year Balloon
These PAFs do not apply to Flex or MyCommunityMortgage.
LTV Range
% CLTV Range
% Non Interest-Only PAF Interest-Only PAF
FICO <720 FICO >=720 FICO <720 FICO >=720
65.01- 75 90.01-95 -.250 -.250 -.500 -.250
75.01-95 90.01-95 -.250 -.250 -.500 -.250
75.01-90 75.01-90 -.250 - -.500 -.250
_______________________________________________________
2-4 Unit Properties
The PAF of -.500 for 2-4 unit properties will apply to loans with LTVs of
75.01% - 90% for the following loan programs:
Conforming Fixed Core
Standard ARM Core (conforming loan amounts only)
Expanded Approval
This PAF does not apply to MyCommunityMortgage.
_______________________________________________________
Standard ARM Core
Updated PAFs for Standard ARMs (conforming loan amounts only) with FICO's < 660:
FICO LTV (%)
<=70 70.01 - 75 75.01 - 80 80.01 - 90 > 90
>= 700 +.125 +.125 - - -.250
660 - 699 +.125 -.125 -.250 -..250 -.500
640 - 659
-.750 -1.000 -.1.250 -1.250 -1.250
620 - 639
-.750 -1.250 -1.750 -1.750 -1.750
< 620
-1.250 -1.750 -2.000 -2.000 -2.000
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Published November 29th, 2007
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