Mortgage Blog

This is what I've received this morning from Franklin American.  They're finally rolling out JUMBO conforming pricing.  About time....

Hello, we are pleased to announce the roll out of our JUMBO CONFORMING product effective today June 27, 2008.
 
PRICING will be available starting on today’s rate sheet with adjustments listed to the Conventional Conforming price.
As always, please be sure to price your loans on our WEBSITE PRICER to confirm your pricing.
 
Please see the attached Jumbo Conforming flyer available in the following states/areas:  MA, RI, CT, NH, VA, TN, PA, OH, NC, NJ, MD, DE, GA, FL, DC
For loans that are Approve Ineligible due to LOAN AMOUNT ONLY.  We will then manually underwrite these loans.
COMPLETE GUIDELINES will be published on our website within the next few days so more details are to follow.
Here are some of the basics as I understand them.  I wanted to put them in an easy to follow format to give you a flavor of the product:
 
Term                30 YR Fixed
Property           SFR only (No Condos)
Occupancy       Owner Occupied
Documentation Full Doc (regardless of findings)
DTI                   45% Max
Reserves          2 mths PITI
Loan Amounts $729750 Max     $417050 Min     Loan Limits determined by county
LTV                  Purch               700 mid 90/90   660 mid 80/80
Refi R/T            700 mid 90/90   660 mid 75/75
Refi Cash Out   720 mid 75/75   $100000 max cash out
Note: Minimum 6 mths since last refi or purchase to do a refi transaction = A minimum 6 mortgage payments must be made.
Credit History   0x30 on mortgage/rent in the last 12 mths.  Must have a minimum 12 mth housing history.  Bankruptcy discharge minimum 7 years.  No non-traditional credit.
Appraisal         Must be dated within 90 days of note date
Appraisers must be qualified to perform the appraisals without “supervision” by a “supervisory” or “review” appraiser
 
Again, these are some of the basics, so please refer to the complete product guidelines to confirm details which will be published on our website within the next few days as mentioned.
This is clearly a vanilla type product, but should certainly create some more opportunities for us to do business while taking advantage of the Economic Stimulus Act.
I hope you find it to be a nice value add, and as always, please call me with any questions.
Thanks for your business.  Mike
 
Michael Kot
Account Executive

Franklin American Mortgage Company
Cell: 401.219.6453
eFax: 615.261.8768
Email: mkot@franklinamerican.com
Web: www.franklinamerican.com