In keeping with the recent changes by numerous Mortgage Insurance Companies, Bank of Ann Arbor is announcing the following changes that will take place effective June 30, 2008
Borrower-Paid and Lender Paid Mortgage Insurance
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Monthly premium rates will increase for all LTV categories, rates will be credit-score based.
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Monthly rate plans will feature adjustment increases for cash-out and rate/term refinances.
Please keep in mind that these changes are in response to changes made by the Mortgage Insurance Companies and as such we have no flexibility with regard to exceptions. If you need further information please contact your local Account Executive or Underwriting Department.
Thank you,
Bank of Ann Arbor
IMPORTANT NOTICE
In keeping with the recent changes by numerous
Mortgage Insurance Companies,
Bank of Ann Arbor is announcing the following changes to
any >80% LTV loan.
Effective
May 1, 2008, the following loans are no longer eligible if the LTV exceeds 80%:
Stated documentation loans
Second Homes
Investment Property
A Minus (DU Expanded-all levels, LP Caution) regardless of FICO
Cash out refinance if listed within last 12 months
Qualifying Ratio exceeding 33/38
Unemployment Income
Additionally, if the subject property is located in a declining value area as defined by the
Fannie Mae findings, Freddie Mac findings,the Appraiser, or the Mortgage Insurer list of zip
codes/counties/cities, the following loans are no longer eligible for Mortgage Insurance and
therefore are ineligible above 80% LTV:
Second Homes
Investment Property (including owner occupied 3-4 units)
Condominiums
Co-ops
Cash out refinance
A Minus (DU Expanded-all levels, LP Caution) regardless of FICO
Stated Loans
Manufactured Housing
Construction to Permanent
ARMs w/first rate adjustment < 5 years or IO period < 10 years
Loan amounts greater than $650,000
This memo is not meant to be all encompassing. You may check with your Account Executive
or underwriting for additional LTV and FICO restrictions. Please keep in mind that these
changes are in response to changes made by the Mortgage Insurance Companies and as such we
have no flexibility with regard to exceptions.
Any loan currently outstanding that is affected by these changes MUST be cleared to close
prior to May 1st.