Hello,
Has anyone ever seen or heard an 80% lend getting requests for more docs from the LMI provider?
Smallbuyer
Has anyone ever seen or heard an 80% lend getting requests for more docs from the LMI provider?
Smallbuyer
LMI at 80%
- Thread starter smallbuyer
- Start date
Some lenders do mortgage insure loans even at 80%. It wouldn't be a mainstream lender though.
Ive always through a lots of lender get LMI on loans 80% and less but borrowers dont pay for it? Was looking at some lenders outside the majors but just curious that the stories is here as i heard the other day about someone on a 80% lend getting asked for a bunch more stuff from the LMI guys after the bank approved the loan. Ive never heard of this for an 80% loan before only like 90%+ ones. Do they do another higher level of checking on some banks or credit providers?
Full Doc Resi, small loan <$500k i think and good credit rating i believe (passed by the lender already)
In many cases the borrower doesn't pay for the LMI, but it still exists. The insurer still has the right to review the loan application and they can ask for further information.
With the major lenders, the insurer is unlikely to look at an application because those lenders all have their own underwriting authority. There are circumstances where this doesn't apply.
If you're looking at smaller lenders you're possibly looking at mortgage managers or private funders. This would explain the OPs query.
Non bank lender?
This only happens with non bank lenders and smaller lenders/smaller credit union who tend to insurer pretty much EVERYTHING at any LVR as they get their funding via "securitisation" rather than your normal term deposit/savings --- pass onto home loan clients.
In most cases the LMI is paid by the non bank lender, BUT you as a borrower still need to pass the banks and the LMI's credit policy.
What are they asking for anyway?
Thanks for your replies. I think its one of those securitized lenders. Asking for tax return which seems a bit strange as the person is PAYG not business.
Asking for a tax return would not be uncommon for a lender at any level.
Mountain out of a molehill stuff!
pinkboy
I think its in a 'normal' area. The whole thing i just find strange as i always thought @ 80% LMI wasnt an issue, if its even used its sign off is a formality not something that slows down finance? If this can happen is someone in a hurry better going with a non securitised lender?
