Another national residential lender has tightened their guidelines.They will no longer allow 100% financing on purchase mortgage loans. Maximum CLTV for full documentation loans is 95% while stated income loans have been dropped to 89.9%.The minimum credit score for full doc loans has been increase to 680. I would imagine that the stated income loans will have an increase in their minimum credit score soon, and eventually be eliminated from the product menu.

     The loan products are eliminated effective immediately.If you loan has already been submitted to your lender, please see to it that you can still close the loan and at the effective rate.Some lenders are first increasing the interest rates and then eliminating the products.I call this glomming.The consumer is going to be greatly effective by this huge movement in products by greedy lenders and stupid loan officers.Again, buyer beware.Make sure you have back up plans for your loans, lenders and are covered legally if you have issue with losing your loan commitment after your mortgage contingency clause expires, but before your closing.

– Dale Siegel