The new World in the Liquidity market!
This man knows what he is talking about in the lending market!
Senior Home Mortgage Consultant
DE Capital Mortgage, LLC
205 E 42nd Street, 6th Floor
New York, NY 10017
(212) 692-8468 Tel
(866) 972-6982 Fax
(646) 256-7138 Cell
The number of changes to the guidelines are innumerable. Here is just a small sample of some things that have affected our market:
1. Tougher rules on fidelity bond insurance (employee dishonesty). Mostly 3 months of the previous years maintenance with a managing agent rider.
2. Maximum debt-to income ratio of 45%.
3. Higher presale requirement for condos.
4. Homeowners insurance requirement (HO-6) on condos to cover the inside of the unit (including personal property and liability) of at least 20% of the appraised value.
5. On condos the homeowner's association must have 10% of budgeted income for replacement reserves.
6. Additional risk based pricing hits for higher loan-to values at every 20 point break in credit scores.
7. Additional fees for condos above 75% loan-to-value.