Mortgage Insurer withdraws Nodoc product.
- Thread starter Qlds007
- Start date
Richard, does this mean then that I wouldn't be able to get them to do an increase in the loan I have with them already? And if not, would they still charge the same exit fees to re-finance with another lender so that I can access the increased equity in that house?
Glucose
Does this mean then that I wouldn't be able to get them to do an increase in the loan I have with them already? And if not, would they still charge the same exist fees?
Yes regretfully that is the case. I have an existing client with whom PMI insured the original loan some 3 years ago and have now declined an increase as they do not wish to provide cover this area to a level of 80%.
Does this mean then that I wouldn't be able to get them to do an increase in the loan I have with them already? And if not, would they still charge the same exist fees?
Yes regretfully that is the case. I have an existing client with whom PMI insured the original loan some 3 years ago and have now declined an increase as they do not wish to provide cover this area to a level of 80%.
An interesting development Richard.
Do you think Mobius withdrew the product because they couldn't get mortgage insurance?
What do you think the future is for lo doc and no doc loans generally? Is it the mortgage insurers that determine lo doc lending criteria....i.e. they revalue the risk associated with underwriting these loans?
I have been concerned lending criteria will tighten, and am wondering what the risk might be in further delaying construction of a duplex I am holding land for. I need lo doc for it.
Do you think Mobius withdrew the product because they couldn't get mortgage insurance?
What do you think the future is for lo doc and no doc loans generally? Is it the mortgage insurers that determine lo doc lending criteria....i.e. they revalue the risk associated with underwriting these loans?
I have been concerned lending criteria will tighten, and am wondering what the risk might be in further delaying construction of a duplex I am holding land for. I need lo doc for it.
Of course....but wouldn't it be a reasonable assumption that lending criteria will gradually tighten for these products in Australia, if mortgage insurers perceive the risk of underwriting such products increases? For instance, might lenders be forced to seek more concrete proof of ongoing income sources from lo doc loan applicants?
If I was considering a loan with RAMs, I'd be negotiating another clause in the mortgage docs to the effect that any rate change mirror the RBA's, and not a smidgeon more.....
Hiya
I think u will find that fringey lenders will hit their Lo doc and no doc clients for a nice big ncrease, so that they can retain their full doc clients on lower rates.
ta
rolf
I think u will find that fringey lenders will hit their Lo doc and no doc clients for a nice big ncrease, so that they can retain their full doc clients on lower rates.
ta
rolf
Yes, it will be interesting to watch - the majors are also raising more than the RBA has - which, after all, is their competitive rate and is not, nor is it meant to be, a market limiting rate.
Got word today that one of the smaller banks will be raising between .25% and .33% depending on the product.
I guess there comes a time when suppliers of anything - cars, widgets, money - take the opportunity to reprice their products. There is never a convenient time to adjust prices, so may as well do it while everyone else is doing it. That way, the customer who feels agrieved can check out the competition, realise that everyone is in the same boat, and perhaps realise that they aren't on such a bad wicket after all.
No one likes a price increase, but I no longer even check petrol prices. I have to fill up the tank twice each week, so I pick the service stations most convenient for me. What I pay for petrol I wouldn't know. I know from experience that very few people know what interest rate they are paying and are somewhat surprised when they get a letter telling them what their new interest rate will be.
When I bought my first house (ESP Building Society, God bless them!) I didn't know I was paying 12.75% until I got a letter telling me that the interest was being reduced to 12.50%!
However, the house doubled in value within three years so I didn't really mind too much.
I was just very grateful that someone had lent me the money and we can protest all we like, but unless we have a spare couple of hundred thousand dollars in a box under the bed, if we want to borrow someone else's money then we, too, have to meet the market and pay the going rate.
Being cynical gets us nowhere.
Cheers
Kristine
Got word today that one of the smaller banks will be raising between .25% and .33% depending on the product.
I guess there comes a time when suppliers of anything - cars, widgets, money - take the opportunity to reprice their products. There is never a convenient time to adjust prices, so may as well do it while everyone else is doing it. That way, the customer who feels agrieved can check out the competition, realise that everyone is in the same boat, and perhaps realise that they aren't on such a bad wicket after all.
No one likes a price increase, but I no longer even check petrol prices. I have to fill up the tank twice each week, so I pick the service stations most convenient for me. What I pay for petrol I wouldn't know. I know from experience that very few people know what interest rate they are paying and are somewhat surprised when they get a letter telling them what their new interest rate will be.
When I bought my first house (ESP Building Society, God bless them!) I didn't know I was paying 12.75% until I got a letter telling me that the interest was being reduced to 12.50%!
However, the house doubled in value within three years so I didn't really mind too much.
I was just very grateful that someone had lent me the money and we can protest all we like, but unless we have a spare couple of hundred thousand dollars in a box under the bed, if we want to borrow someone else's money then we, too, have to meet the market and pay the going rate.
Being cynical gets us nowhere.
Cheers
Kristine
While watching Lateline one night last week I believe it was, they said that Mobius had purchased another lender's loan portfolio of no/lo docs most of which were now in arrears....or something to that effect. In any event the underperfoming loans they had purchased (presumably at a time when they were performing) represented 25% of Mobius's total loan book.
Maybe that's why they're being like this???
I took an interest simply because my last 2 IP's were funded by Mobius (via Pioneer) at 95% LVR's. So far they have been the first of my financiers to send the letter - within days of the RBA announcement - of the 0.25% increase.
Cheers,
Aimy
