by Tanta on 3/31/2007 08:46:00 AM
Saturday, March 31, 2007
Hat tip to jmf!
Fulton Financial reports on repurchases of loans originated through its Resource Bank subsidiary:
In recent months, Resource has experienced an increase in the rate of EPD and corresponding requests to repurchase such loans, primarily related to one specific product sold to one investor. This product, referred to as the 80/20 Program, involves financing of up to 80% of the lesser of the purchase price or appraised value for a first lien mortgage loan and up to an additional 20% of the lesser of the purchase price or appraised value for a second lien home equity loan. Investor underwriting requirements for the 80/20 Program do not require independent verification of the borrower's income. To be eligible for loans under the 80/20 Program, borrowers are generally required to have a credit score of 620 or greater.Fun facts:
- Loans originated for sale under the 80/20 Program in 2006: $247MM
- Pending repurchases of 2006-originated 80/20 Program loans: $22MM
- Remaining 2006 80/20 loans still subject to potential repurchase: $72MM
- Average FICO on requested repurchase loans: 653
- Percent of repurchase requests due to Early Payment Delinquency: 80%
- Date Resource quit offering this loan program: February 2007
These are fairly small absolute numbers for a lender of this size. The point is that this is under any definition Alt-A, not subprime.
Posted by Tanta on 3/31/2007 08:46:00 AM