2008 December/November Updates (Provided by TMG – The Mortgage Group)
Bridgewater Bank
1) BWB is following Genworth’s new guideline under their BFS “Alt A program – commissioned sales people no longer eligible under this program.
Citizen’s Bank (BC, AB, ON)
1) No longer accepting mortgage applications through the Broker Channel
Coast Capital (BC)
1) Receipt of Commission – due to change in internal auditing process your finder’s fees may take up to 30 days to pay on fixed terms and up to 90 days on LOC’s
Concentra
1) VRM Rate now at Prime + 1.5%
Firstline
1) Power of Attorney – no longer accepting POA as routine, only exception is Military families. Private Sales – will finance only if hi ratio. Documentation- all docs must be received minimum of 10 business days and lawyers must request funds a minimum of 5 days before funding.
2) Reminder payment dates are set at Firstline. All ARM payments occur on the 1st of each month. All fixed product with monthly payments come out on the 1st or 15th only. By-Weekly or Weekly payments must come out on Fridays.
3) Firstline will use additional sources of income: Car Allowance can be used if it’s a “perk” of the job and the car is not needed to actually perform the job. It must also be a taxable benefit. Alimony/Support Payments can be used if proof is provided showing a 3 yr history and copy of agreement outlining terms. Child Assistance/Child Tax Benefit Income can be used if child is 12 yrs or under and proof is required. Universal Child Care Benefit – may be used however only available until child turns 6 yrs of age.
4) Minimum Beacon Score for Pre-Approvals must be 600. Minimum beacon of 580 is required for real conventional deals, but pre-approvals must now be 600.
First National Financial
1) FNF launched their Mobile Merlin on Dec 3/08. This allows you to review all your deals through MERLIN using your mobile PDA
2) VRM rate went from P + 1%, down to P + .60% and now back up to Prime + .80%
HSBC
1) New sliding scales: Residential Revenue/Recreational Properties = 70% of the first $500,000 and 50% of the balance. Existing HSBC Bank Non-residential Properties: 65% of the first $500,000 and 50% of the balance. Insured Mortgage Loans CMHC: Up to 95% of owner occupied single units and duplexes/semi-detached units. Up to 90% on 4 unit residential buildings with one unit owner occupied.
ING Bank
1) Buydowns are always available with ING.
2) Remember all appraisals need to be ordered through NAS (National Appraisal Service) or Brokerworx.
3) Large Mortgages now have some restrictions – Effective Nov 26th mortgage insurance will be required on all properties with a mortgage balance above $750K regardless of the LTV. All Condominium properties will require insurance if the LTV is greater than 75%. All non-owner occupied condo’s with a LTV greater than 75% will require mortgage insurance effective Oct 31/08
Laurentian Bank
1) HELO’S - rates have moved, now prime + 2% in first position up to 80% LTV. (up from prime + 1.5%). Qualify at 3 yr rate.
Macquarie Financial
1) Updated their credit criteria for the Genworth “Alt A” program. Primary applicant must have a minimum beacon of 700 (up from 680) and secondary applicant must have a minimum beacon of 680 (up from 650) for mortgages at 95% LTV.
2) Tiered Pricing for loan amounts. All mortgages over 1$ million receive the lowest fixed rates.
MCAP
1) Reduced their M Power VRM Mortgage to Prime + .60. Also offering quick close special rates. Deal must close within 30 days of submission. Rates vary depending on commission paid.
2) Effective December 19, 2008. All TMG brokers who have submitted less than 3 deals or have a very low funding ratio will be placed on MCAP’s “inactive list”. MCAP will be sending out notices to inform those brokers that are no longer able to submit deals directly
3) 40 yr amortization still available on all conventional deals.
4) Large Loan Sale – the larger the mortgage, the better the rates.
5) Stated Income deals – up to 95% LTV for BFS and up to 65% LTV for salaried individuals.
Merix Financial
1) Pre-Approvals & No Frills products suspended – effective Nov 18th
2) Merix now on board with CMHC – Effective Nov 28. Stay tuned to which programs Merix will be offering through CMHC.
3) Merix now offering all HELOC and VRM clients great rates to lock into a fixed term. Letters are being sent out to convert and if they do, you will be paid a finder’s fee. You will be paid 50 bps on the fixed mortgage, provided the client confirms they spoke to you about this offer. Make sure to contact all of your VRM clients and advise they will be receiving a call.
National Bank
1) All In One (AIO) – LOC portion rate has increased from Prime to prime + 1% still paying 65 bps
TD Canada Trust
1) In-House Registration Fees have increased effective Dec 8/08. AB = $335, BC=$440,MB=$445, NB=$740, ON=$495, SK=$460,
2) VRM has moved from Prime + 1% to Prime + .60% and back to Prime + .80% (as at Dec 15/08)
3) Contest – Sponsored by First Canadian Title – Every time you do a Refinance with TD, your name is entered into a draw to win.
TMG White Label Mtg
1) TMG mortgage is pleased to announce a partnership with CMHC as an insurer and will be offering all of their products in the very near future. Both Genworth and CMHC are now on board.
Non Conforming Lenders
CitiFinancial
1) No longer accepting mortgages from Brokers. Citi will only take applications directly from consumers.
Optimum (CWB subsidiary) – Western Canada Only
1) Recent changes – Revenue Properties revised LTV up to 70% for purchases and 65% max LTV for a refi. Acreages now have a maximum LTV to 65%. Previous Bankruptcies still OK however 12 months of re-established credit is required.
Well Fargo
1) Now have open mortgage products with no penalty. Only 3 & 5 yr open product available with 40 year amortization up to 100% LTV
2) No lending area restrictions. No qualifications for distance to major urban centers. BFS OK and no NOA required.
Partners
CAAMP
1) Introduced a new AMP designation for brokers who have been in the industry less than the normally required two years. “AMP Candidate” can now be inserted on your business card if you have not been an active mortgage agent for the required two year minimum. See the CAAMP website for further details. http://www.caamp.org/
Genworth
1) Changes to the BFS “Alt A” program – Primary applicant must have a minimum beacon of 700 (up from 680) and secondary applicant must have a minimum beacon of 680 (up from 650) for mortgages at 95% LTV. Commissioned sales people no longer qualify under this program.
Filed under: General Mortgage News
