oddsneds

Noose Tightens on Non-Conforming Loans

On the other hand,in early July I applied to a small regional NJ bank, where I did not have any deposits or history, for a full doc $502,000 refi of my 2004 WaMu NIV 5/1 option arm whose initial reset was coming due in early 2009. This is about 70% LTV at today's appraisal, and I have a $200K IRA and some other assets, and run a business so I am considered self employed. It was approved in 3 days at the requested 5.625% as a 7/1 arm with 0 points. They say they will hold the loan in their portfolio.

Even putting aside the fast approval, this rate was 1 full point below what WaMu offered. WaMu has my 100% perfect payment history. I wouldn't have bothered with any major brand name bank because their need to rebuild capital is going to force restrictive top-down decisions like those discussed in this article. Bottom line: if you are qualified by reasonably conservative standards you will not have any trouble getting funding from a healthy regional or local bank. If you are looking for free and easy money those days are gone...for now.