Product Changes & Updates for the month of March, 2009
ATB Financial (AB)
1) Quick Close 30 days special = 5 yr rate of 4.15%
2) Still do mortgages on Raw Land however no commission
3) HELOC’s available to 80% LTV – pays 50 bps on funds used 60 days after Heloc is registered
Bridgewater Bank
1) Advantages of working with BWB – Work with all three insurers. Will use 80% rental offset on both suites and rental properties. Will give 2% cash back to be used for anything except DP. Will use Child Tax Credit to age 12. Minimum beacon of only 600 for primary applicant.
2) Introducing the BwB Re-Fi Express program – offers you and your clients speed and convenience.
Envision (BC)
1) Envision has re opened their doors to all mortgage brokers for a limited time 5 yr special. Valid until April 17, 2009.
Firstline
1)Open ARM Commission Claw Backs – Effective March 9/09 Firstline will commence a claw back policy if clients payout their mortgage as follows: Day 1 – 180 = 100% clawed back, Day 181 – 365 = 50% clawed back, After Day 365 = None
2) Express Underwriting System is now being used. This new system assigns a mortgage number and an underwriter immediately therefore all all docs can now be faxed directly to that underwriter. 3) Early Renewal Process: Once you get the new “post funding” Client Consent form signed (currently onTMG Broker Net website) you can contact Firstline directly to discuss penalties or any blended rate opportunities on behalf of your client.
4) Extended their quick close special until May 31, 2009 and funding no later then June 30/09. Valid for standard fixed product, does not include float rate mortgages.
5 )Make sure the following is included when submitting to Firstline: a) Client Consent b) if True Name Fraud Warning appears on the bureau, make sure due diligence is done and explain in notes. c) Reason for mortgages (refi or purchase) d) Client information – both home & work telephone numbers should be included.
6) Relaunches New Immigrant and Non Residents Programs for Conventional Lending. a) New Immigrant up to 65% LTV, max mortgage = $1M. Standard ratios apply based on stated income. Power of Attorney is allowed. b) Non Resident Investment Property program up to 50% LTV, Max mortgage = $750K, max 1 ppty allowed.
HSBC
1) All 5 year fixed deals that are currently in the pipeline and fund up to and including April 30/09 will receive an auto float down rate of 3.99%. All deals submittted after March 31/09 will receive the rate of 4.09%
Home Trust Accelerator
1) Lending areas have increased in BC to include: Sooke, Cobble Hill, Duncan, Chemanius, Lady Smith
IC Savings (ON)
1) Remember IC Savings has both an A program as well as a B program for those who may have credit challenges.
ING Bank
1) Rate drops are automatic with ING. They do a look back and always give clients the best rate. Remember you must be an approved ING broker to submit.
2) To be an approved broker, the following criteria is required: a) Minimum $5M or 25 deals funded annually to be given Provider status, $10M or 50 deals to be given Partner status. Approval ratio’s must also be monitored: a) Approval Ratio (approval to decline ratio = 75%). b) Sign Back Ratio (where the client signs back the commitment) = 70%. c) Funding ratio (% of deals funded from signed back commitments) = 85%.
3) Rental Income Guidelines a) Conventional – O/O will use 80% of gross rental as other income. This applies to both subject or non subject properties (no rental offset can be used) b) Hi-Ratio – will use 80% direct rental offset on subject and 50% into other income on all existing revenue properties.
4) New Guidelines for BFS – effective March 1/09 ING will only do 85% LTV for BFS refinances. Minimum beacons have increased to 650. For conventional refinances, minimum beacons must now be 620.
5) All appraisals must be ordered through BrokerWorx or Nationwide Appraisal Service (NAS)
MacQuarie Financial
1) Announcing an Adjustable Rate Mortgage – 5 yr Spring Special. Rate is Prime + 1%
MCAP
1) Assessments no longer accepted to confirm property value as they are based on previous years value and therefore not deemed relevant in today’s current market. Full appraisals now required on all files where LTV is 50% or over. Drive by appraisals required on LTV 50% or under. Desktop or tax assessments no longer accepted
2) Policy Updates – a) all brokers who wish to submit to MCAP must be registered using PROFESSOR. b) Minimum funding ratio requirement is 67% c) all documents must be submitted at least 10 day prior to funding d) make sure your notes indicate any quick close rates that you require.
3) 30 day Quick Close specials do not include: Rentals, Stated Income, Pre-Approvals, Secondary Homes or Transfers)
4) U-curve Rate Policy – clients will receive lowest rate between the commitment date and 2 days prior to funding.
5) New Appraisal Ordering Process – Effective April 6, 2009 all appraisals need to be ordered through Solidifi. Please register with Solidifi Values
6) does not participate in the high ratio policy of 44%/44% if beacon scores are over 680. Their maximum ratios are 32%/42%
Merix Financial
1) 5 yr quick close special has a capped finder’s fee to 75 bps (70 cash and 5 credits) for all those on the upfront model.
Northern Savings (BC)
1) Pays Trailer Fees on all Renewals for the life of the mortgage. Currently paying 100 bps on 5 yr fixed
ResMor Trust
1) Effective April 1, 2009 – ResMor Trust introduced its new Broker Achievement Program. This replaces their Corporate Volume Bonus Program so Resmor is no longer considered a Matrix Lender for those Agents on a VB sharing model.
2) Reinstates their 90 day Mortgage Pre-Approval effective April 3/09.
Scotia/Maple
1) The Vancouver underwriting centre is no longer accepting supporting documentation today. All documentation for approved deals or new deals submitted should be sent to the Calgary centre at Fax: 1-866-265-5577. Going forward documentation for all deals will be received and reviewed by Calgary. Review the deal on the Scotia web site for your new assigned underwriter name. All contact information is available under “Contact Us” at bottom of web page.
For the remainder of April you will only fax information to our Vancouver office if/when the underwriter asks you to send items to Vancouver specifically.
2) The Scotia Fixed 10 year Mortgage is not available for Pre-approvals, Free Down Payment mortgage, Progress Advance mortgage or Refinanced mortgages with multiple draws.
Street Capital
1) Because Street insures all their mortgage, a CMHC fee will be added even if the LTV is below 80% which client pays for. Remember any transfers made to Street must be CMHC insured. All basement suites must be legal in order to use the basement suite income.
2) Would like to remind that their VRM rate at P + .80% qualifies using their 3 yr discounted rate so client will qualify for more of a mortgage. 20/20 pre payment also available. (Not available on rental properties)
TD Canada Trust
1) Replacement Mortgage Policy: Given today’s market conditions, the IRD penalty will be large. If one of your customers is considering discharging their TD mortgage have them request an Information Only Statement by calling 1-866-222-3456. Remember this information is for general mortgage purposes and should not be used to determine final payout penalty. For an exact payout statement, a lawyer or notary must make an official request.
2) Cash Back Products: 4% on 5 yr term, 5% on 6 yr term, 5% on 7 yr term, 5% on 10 yr terms. Rates are 1% higher than fully discounted.
3) Recently, there have been a number of deals declined by our Insurers because incorrect or invalid customer phone numbers and/or postal codes were included on the credit application. It is important that the work/home phone number and postal code fields are completed with accurate information before the application is submitted to the underwriter for approval. This will result in faster credit decision and a better overall customer experience.
TMG Branded Mortgage
1) Transfer/Switch Program Clarifications: Max LTV mortgages that can be transferred is 95%. Max amortization period on hi-ratio is 35 yrs (so if client has a 40 yr am, this mortgage will not be accepted under their Transfer Program. Max amortization on conventional is 40 years. A maximum of $1,000 can be added to current mortgage should client have to pay a penalty. No exceptions to this policy. Require a minimum of 15 days to complete once all documents have been received by lender.
2) Effective March 13/09 - no longer require a T1013 signed by applicants that are using an NOA to confirm income.
3) Capped appraisal costs to $375. on transfers
4) Buy down rate special available on 3, 4 or 5 yr terms.
5) Rental Properties – will use 80% direct rental offset where the rental income is validated with T1 Generals. If income cannot be validated, only 50% of rental income can be used as “other income”
VanCity Credit Union (BC)
1) Still not doing any pre-approvals or rate holds.
Non Conforming Lenders
Firstline Access
1) BFS clients can borrow up to 80% LTV with a beacon as low as 580.
IC – Italian Canadian Savings Cr Union (ON)
1) Remember IC Savings has both an A program as well as a B program for those who may have credit challenges.
Wells Fargo
1) Purchase and Refinance – Will still do 100% LTV with a 40 year am – Open mortgage too!! Need-640 beacon for primary applicant. Must be salaried, zoned residential on SFR, Town home, Duplex, and Low Rise. Three trade lines on the highest income earner and 1 at least 36 months . Max deal size at 100% $449,999
Filed under: General Mortgage News
