Thanks to reader and friend Chris for the tip that US Bank has eliminated all stand-alone second products and purchases above 85% LTV. As banks and MI companies become more conservative home prices will continue to fall as the market of potential home buyers shrinks. 15% down is a nice change and hearkens back to the days when buying a home meant you actually wanted to own it; but for a cash-strapped populace used to financing life it means that it’s harder to own a home right now.

Here’s an email regarding the changes:

Effective Wednesday March [sic] 11, there are some changes to our rate sheet. These changes only effect new loan submissions and do not effect anything already in the pipeline. The most obvious change is that we now have a two page rate sheet instead of four and we are no longer doing stand-alone seconds or purchases above 85%. These changes do not effect the core business that we have been closing at US Bank and will allow us to be more competitive on our target product of 90% NO MI loans in the future.

Our best product niche has actually improved! US Bank now offers jumbo loans to 75% without a bump to the rate. If you look at the rate sheet, you will see that means rates as low as 5.60% interest only on our jumbo product to 75% . We can still piggy-back our own second mortgages behind our first to 85% CLTV. This combination allows us to offer amazing jumbos up to 85% CLTV.

The elimination of our high rate sub-prime product and our decrease in second mortgage LTVs will allow us to use our resources to meet the service levels that you have come to appreciate from US Bank. These two products have been wasting valuable underwriting hours that within the next 45 days will be available to meet your first mortgage needs.

I know that change is not always viewed the way it should but, in the case of US Bank these changes are positive and will allow us to meet your mortgage needs for years to come.

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Source [blownmortgage]

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This entry was posted on Tuesday, June 17th, 2008 at 9:27 pm and is filed under mortgage industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.