Adelaide bank restricts LMI cap

[tobe]

Sad day.

Adelaide bank now restricts their LVR to 95% inclusive of LMI.

Seems its now only bankwest that capitalises LMI above 97%. Interestingly Rams recently changed their maximum to 98.5%.

Shame, I was writing alot of adelaide bank thru mortgage managers and getting the credit card for funds to complete. Done about 3 million so far this year, for second homebuyers and divorcees mainly.

 

[Rolf Latham]

makes good sense in the market I reckon.

ta
rolf

 

[Aaron_C]

I saw that today as well. Limit of $20k cc for sub 80%, $10k for 80-90 and $5k for 90+. Must be too many on their books!

 

[Rolf Latham]

Seems its now only bankwest that capitalises LMI above 97%.

watch that space.

As the other lenders pull theirs, BWA will have too much of this stuff on their new books and will be forced to do same.

One cant have such a poorly balanced book for a ny length of time

ta
rolf

 

[tobe]

I doubt Bankwest is competant enough to fill up their book with 99% deals anytime soon......

 

[Aaron_C]

I don't get it though. All loans are fully insured by Genworth/QBE without any DUA so I don't understand the imperative to limit the LMI cap or the secured visa limit.

 

[Rolf Latham]

I don't get it though. All loans are fully insured by Genworth/QBE without any DUA so I don't understand the imperative to limit the LMI cap or the secured visa limit.

Lender wants to manage its risk even though it passes some of it off.

much of ABLs book isnt balance sheet funded Im guessing

ta
rolf

 

[Corey Batt]

Adelaide Bank are going to get more desperate for loans then as it continue to dry up.

 

[Aaron_C]

Well ABL is more expensive than the others plus their lack of DUA makes them a harder fit than most without a niche like the one they are trying to remove. This will have a big impact on their book that's for sure from the broker market.

 

[Jamie M]

Apparently 95% lends are being credit scored more harshly these days by BWA - I haven't tested it yet but had a good run with them beforehand.

Bummer about ABL - they were one of the go to guys for 95% + fully capped LMI

Cheers

Jamie

 

[Rolf Latham]

I doubt Bankwest is competant enough to fill up their book with 99% deals anytime soon......

Cynic

All the wheels work well on Tuesdays and Thursdays, sceptical if you want to do a top up. Dem we only do on Saturdays

 

[Aaron_C]

Bummer about ABL - they were one of the go to guys for 95% + fully capped LMI

I remember they were very concerned (ABL) when I got through a 95%+LMI+cc that took the LVR to about 102%. Guess we killed the golden goose.

 

[Jamie M]

So you're to blame!

ING used to be good back in the day when it came to uncapped LMI.

Still a good option for 97% inclusive of LMI/REF - especially if the deal qualifies for REF, it's much cheaper, doesn't go to LMI and they don't seem to score too harshly.

Cheers

Jamie

 

[Aaron_C]

Yeah ING not too bad but of course due to their crappy servicing they are limited to the first few purchases only!

 

[D_One]

I remember they were very concerned (ABL) when I got through a 95%+LMI+cc that took the LVR to about 102%. Guess we killed the golden goose.

Wow!!! Where is the SANF in that, especially if the borrower is a first home buyer.

 

[DaveM]

I remember they were very concerned (ABL) when I got through a 95%+LMI+cc that took the LVR to about 102%. Guess we killed the golden goose.

Wow!!! Where is the SANF in that, especially if the borrower is a first home buyer.

Pretty sure that was my PPOR loan Aaron wrote for me Its all my fault

Shame, I was writing alot of adelaide bank thru mortgage managers and getting the credit card for funds to complete. Done about 3 million so far this year

3 million loans this year is a lot of paperwork, you must write just about every loan in the country

 

[Aaron_C]

Wow!!! Where is the SANF in that, especially if the borrower is a first home buyer.

Both applicants had strong incomes and equity elsewhere so it was OK. It's the LMI who have to be worried actually if anything but that massive premium of $30k or so I'm sure made them fine with it.

 

[Colin Rice]

BOQ do 95% + full cap LMI. Have not tested it yet as I haven't got around to the accreditation!

I've been smashing a few through with BWA 95% + full cap with no probs. Surprised the BDM hasn't call barred me though in my efforts to get it through on time

 

[tobe]

Pretty sure that was my PPOR loan Aaron wrote for me Its all my fault



3 million loans this year is a lot of paperwork, you must write just about every loan in the country

Lol, I take that as sarcasm, yes it is a fair bit of paperwork. 3mil isnt much for investors, but it turns out to be about 10 loans for the starter homes in my area. It was probably about 20% of my business, which is why Im upset its no longer available.

There isnt really anything like it in the marketplace, it was a great niche for the right client.

 

[Aaron_C]

Pretty sure that was my PPOR loan Aaron wrote for me Its all my fault

Lol didn't see this one Dave. Actually wasn't talking about you I did one where the purchase price was $735k so the LVR went to 102%. Yours was a tad lower