Citing a “dramatic reduction in Jumbo volume levels,” “lack of Capital Markets appetite for Jumbo products,” and “worse than expected delinquency performance on these loans,” Chase is suspending “Non-Agency Fixed and ARM (Amortizing and Interest-Only) Product offerings within [their] Wholesale Lending Business.
At the same time, U.S. Bank is moving to a minimum of 20% down for interest only jumbo purchases and a “minimum of $250,000 of assets/reserves seasoned for a minimum of 60 days” for those refinancing an interest only jumbo loan with a loan to value of greater than 80%.
And from a plugged-in reader:
The TIC lending market just tightened this week. The low cost TIC lender in this market, Sterling, just raised all TIC rates by [50bps] this week and increased financial requirements for borrowers…[Editor’s Note: While our reader typed 500bps (5%), we’re assuming 50bps (0.5%) is what was meant.]
A few more buyers just got kicked out of the housing pool. Now about all those Econ101 and supply and demand lectures…
∙ Chase Suspends Non-Conforming Mortgages [SocketSite]
∙ Twelve New Tenancies In Common At Twenty-Two Hundred Beach [SocketSite]