Lender Product Updates and Changes for February, 2009

Lender Product Updates and Changes for February, 2009

ATB Financial (AB)
1)  5 yr Quick Close Special rates available if deal closes within 30 days of application.  Current quick close rate – 4.29%

Bridgewater Bank
1)  Full Child Tax Credit Income can be used if children are 12 years and under.

Concentra Financial
1)  Sliding Scale changes:  Purchases = 80% of 1st $300K, 60% of balance, to max of $750.  Refinance = 70% of 1st $300K, 60% of balance to max $750.
2)  Maximum number of acres to be valued for conventional mortgage is now limited to 5 acres.  (previously 100 acres)
3)  7 & 10 year terms no longer offered.
4)  Vision and Equity programs are temporarily suspended.

Envision (BC) Mission to Maple Rdige (Tricities area), Surrey, Kelowna only
1) 30 day quick close 5 yr rate of 4.27% for mortgages between $100 & 500K up to 90% LTV.  Beacons 640 and above

Firstline
1)Investment Property Enhancements:  Effect Feb 23/09 the following changes are effective:  Min beacon score is 620,  Max Amortization is 35 (but qualifying done on 25 yr am).  Property must be on repayment for 12 months for ETO or refinances.  Net worth of $100,000 required to be stated on application
2)Flex Equity Program change:  Max LTV is now only 65% (previously 75% LTV) and at least one of the applicants has to be BFS (previously both could be salaried)

HSBC
1)Offering a 5 yr fixed closed special – 3.99%.  Must be submitted under a preferred brokers.
2)  New sliding scales:  O/O = 80% of 1st $750K and 50% of balance  Revenue/Recreational = 70% of 1st $500K & 50% of balance,
3)  Not offering pre-approvals at this time.

ING Bank
1) Effective Feb 2, 2009, there will be an Underwriter and Fulfillment Associate ready to process your deals from 5 am – 5 pm PST!
2) Fully Qualified Mortgage Options.  A)  Last two years NOA’s and gross up line 150 by 15%.   B) if 2006 the client made more money than 2007, they will take the 2007 income.  C)  If 2007 income more than 2006, will take average of the two years.
3)  Now requires proof of BFS for high ratio and Equity deals.  Previously an NOA only was required.  Required proof min 2 yr BFS (Business License or GST return summary, TA Generals with statement of business activities for 3 years or Articles of Incorporation

MCAP
1)  Effective February 9, 2009, MCAP – Policy change for Stated Income Program up to 90% LTV.   Beacon scores for BFS and 100% commissioned borrowers is 680.  For salaried borrowers, the beacon score is now 680.    If LTV is 95%, minimum beacon required is 700.
2)  Effective February 9, 2009, MCAP is implementing the policy that all documentation be submitted at least 10 days prior to funding.  Please note, the documents must be accepted a minimum of 2 business days before closing.
3)  Their Quick Close Winter Special is back – 4.29% paying 80 bps.   Must close within 30 days.
4)  Small Rental Program – will go up to 80% LTV with an 80% direct rental offset.  (on subject property only)
5)  M-Power Yield account – provides you with the ability to access improved pricing on high ratio VIP M-Power mortgages.

Merix Financial
1)  The following lenders are on the Merix Approved list for switch/transfer:  Firstline Trust, TD Canada Trust, First National MCAP, Scotiabank, BMO, HSBC, ING, Laurentian Bank, CIBC, Royal Bank & Maple Trust
2) Status Originators now receive designated Mortgage Advisors in the Service Call Centre so your client’s will receive reduced wait times when they want to adjust payments or receive any info on their mortgage.  Status Originators can also call on their client’s behalf with any post funding questions.
3) Reminder of minimum beacon scores:  Owner Occupied = 620+, Rental 660+

Scotia Bank
1)  Scotia relaunches their open product – under the STEP mortgage only.  Rate is Prime + 1% paying 50 bps.  Available on real deals only&no pre-approvals.
2)  Effective February 1, 09, changes have been made to Scotia Mortgage for Self-Employed Program.  Commissioned sales persons are no longer eligible and a business credit report is no longer an acceptable document to confirm 2 yrs self-employment.

Street Capital
1)  Relaunch their 5 year fixed Quick Close special – 4.29% effective February 23/09
2)  Street Capital’s Top decline reasons:  a)  broker/agent unsigned, b) Original purchase date & price missing. c)  Product unavailable (conventional) d)  Bureau older than 30 days.  e)  TDS to high. f)  not enough trade lines on credit bureau.     CMHC’s Top decline reasons: a)  Borrower deemed weak. b)  Can’t support value of home  c)  Stated income too high. d)  Already declined from another lender  e)  Non Conforming property  f)  require stronger co-borrower.

TD Canada Trust
1)Mortgage Payment Extension  (ie mortgage payment deferral)  if you client’s require a payment deferral on their mortgage, have them contact any TD Canada Trust Branch and they can go through the approval process.
2)TD is looking very closely at funding ratios.  So make sure your pre-approvals go live as they are included in your funding ratio.
3) All documentation to fulfill conditions must be sent to the TD Broker Services a minimum of 10 days before closing
4)  Contest – Deals funded from Feb 1 – April 30th with a 65% funding ratio and a minimum of 10 funded deals make you eligible to win a 32 inch Sony Bravia TV.   – Draw date May 11, 2009

TMG Branded Mortgage
1)  Alberta only – Until further notice, lending guidelines in the Fort McMurray area:  Primary residences only, MLS Purchases, refinances limited to 75% LTV.   TMG Branded will no longer accept applications for Rental Properties or Secondary Home properties.

VanCity Credit Union (BC)
1)  Credit line products are back – available as part of a split mortgage accompanied with any term mortgage product.

Non Conforming Lenders

Firstline Access
1)  Will still allow income to be waived for salaried applicants to a maximum LTV of 70% with DP being 100% gifted
2)  Common Decline Reasons for Access:  Property is considered Rural – min 25,000 population or within 45 km of city.  Debt Servicing is above 45%.  Minimum beacons of 580 (for BFS) or 540 (salaried.

Home Trust
1)  Quick close  special  (30 days)  5 years at 4.29%!!!

IC – Italian Canadian Savings Cr Union
1)  Still doing Non-Conforming deals up to 75% LTV max on purchase or refinance with no minimum beacon score minimums.  Target market is Ontario’s “Golden Horseshoe” area.

VFC Home Inc
1)  New Non-Conforming Lender.  Lending only in BC and ON at this time.

Well Fargo
1)  Additional rate discounts for mortgages over $300K, 3 yr term or longer and for both BFS programs.
2)  Do your clients owe income tax?  Wells Fargo will do a Refi up to 100% LTV to assist in paying revenue canada.