Last night the Senior Lending Network announced that it would be temporarily suspending all new applications for its Equity Plus Advantage and Simple 60 for the next 60 days. All remaining applications need to be submitted by October, 29 and must close by November 26, 2008.
According to the email, the SLN saw its volume of new submissions increase much more than expected and has exceeded the mandated allowable threshold on KBC’s balance sheet. Since they were the last remaining wholesale lender to offer any proprietary products this isn’t a huge surprise. As far as I know, Countrywide is the only remaining lender offering a jumbo product right now (retail only).
With just a few more days until the “target date” from HUD to implement the new loan limits, we have yet to see the Mortgagee Letters. I honestly thought we would’ve seen something by now since HUD’s website already reflects the new loan limits, but with HUD you never know.
Reverse mortgage professional Gabe Bodner offers tips for originators to keep in mind during tough market conditions.