Now that subprime mortgage is completely blown out, many credit rating agencies are turning their attention towards Alt-A loans, which are typically reserved for borrowers with good, not great credit, and reduced documentation and limited reserve requirements.
Below is a list of very recent changes that have taken place at mortgage banks and lenders across the nation as a result of the recent credit worries.
This just in, rumors are afloat that Countrywide and IndyMac are allegedly removing stated income programs.
A purported e-mail sent from Chase to a broker said to get any 90% stated income files in before guidelines change.
National City yesterday announced on their website that they are no longer buying second mortgages.
AmTrust Financial Corp., a former Ohio Savings Bank announced today that it has stopped making loans that exceed 95 percent loan-to-value.
It is believed that IndyMac has also halted or will halt the production of second mortgages, also known as piggyback loans, as I reported earlier.
Ditech has switched from high-risk loans to vanilla 30 year fixed programs such as their Sleep EZ loan.
Subprime lender NovaStar Financial has suspended funding of certain loans made by the wholesale unit, more specifically those that have not been locked in, and halted all new loan origination. They are due to resume funding and loan origination on August 7th.
American Home Mortgage Files Chapter 11 after recent mortgage layoffs and their earlier announcement regarding shutting down operations.
Aegis Mortgage has suspended all loan originations, meaning no new business until things get “worked out!”