RAMS kills 100 % lend

[Rolf Latham]

Hiya

One of the last few has contracted ots policy as per below...........

ta
rolf

The maximum LVR will now be 95% (plus LMI capitalisation)


• Any home loan with an LVR greater than 90% will require a minimum 3% deposit sourced from the borrower's genuine savings (excluding the First Home Owners Grant).

 

[Bradsdad]

How long to St George follow suit I wonder, especially given they are both owned by Westpac.

 

[AUSPROP...]

can't believe you could get a 100% lend - wow.

 

[Token Funder]

Another major to drop to 90% in the next couple of days.

 

[luvvit]

bugger,
Im shopping now and have been pre-approved on the 100% with Rams, wonder if they'll still do it......

Ok, note to self, ring broker in the morning....

 

[Rolf Latham]

Hiya Luvit

Pipeline will be ok

The new credit policy relates to all new home loan applications received by RAMS Origination after 5.30pm (EST) Monday 23rd March 2009.


Any full applications or pre-applications received by RAMS prior to this will not be affected by the policy change and will still be assessed under the 100% LVR credit policy.

Ta
rolf

 

[luvvit]

ooooooohhhhhh ta rolf......

Thats really really good news as I've got a target in my sights!!

ps...got a few things on your mind Rolf.?.. most people, even forum-ites are tucked up in their beds at 1am dude......

 

[Rolf Latham]

Hiya Luv it


Sleep is for clients

ta
rolf

 

[Jamie_D]

Hiya Luv it


Sleep is for clients

ta
rolf

Quote from John Bon Jovi - Slippery When Wet Album

'I'll sleep when I'm dead'

 

[sparky23]

Rolf has no time to sleep there are too many loans to work on!

 

[sash]

No more 100% loans....might be a good thing if lending tightened up as I am getting worried about a bubble in the FHB market.

Cooling it now is better than if the bubble escalates and pops big time!

I have a vested interest here as most of my stuff is low end....but I should be okay as they were bought for very cheap prices a couple of years ago.

 

[Rolf Latham]

Thanks for the kind wished Sparky

Would be good, but thats not the case.

Like Many brokers we are certainly busy, but not making anywhere near the amount of decent money we once could, in fact Gross GPs are near half what they were 18 mths ago on similar volumes.

Mustnt grumble ! Still grateful for what I have .

ta
rolf

 

[luvvit]

hmmmm, was just told that (largely) thanks to FHB's that my 100% rams loan can take up to 20 days to compete!!

Riiiiiiiiiiiiiiiiiiiiiiiiiiiiiight. Long settlement anyone?

luvvit.

 

[Kristine..]

Hi Rolf

I hadn't wanted to gatecrash your thread but RAMS have not 'killed' their 100% loan option

The information I have is that due to work overload, RAMS has decided to restrict the 100% option to applications submitted through the Franchise channel.

So it is just the Broker channel which will not be able to offer the 100% for the time being

However, applications currently in process will not be restricted



As with all lenders, RAMS have a product mix and the 100% applications have been more than usual, skewing the mix.


Hopefully, once the first home buyers wave has moved through the system the situation will return to normal.


Cheers
Kristine

 

[Rolf Latham]

Hiya Kristine

Please come into the party

And to make it better and add a couple of Rum and Cokes, shopfront retail can get an approval in 3 days, not 3 weeks like the broker plebs.

Long term though, I cant see the 100 % er staying around, unless WLMI introduce some real though underlying rules

ta
rolf

 

[Peter_Tersteeg]

Whilst I've written a few 100% loans recently, I don't see that RAMS changes will make that much difference for most people.

The LMI premium for 100% loans is often over 3% of the loan amount, whilst for 95% loans it's a touch above 2%.

Effectively you pay an extra 1% LMI for the ability to borrow an extra 2%. There's plenty of good arguments on record that paying a bit of LMI will make your cash go further, but I think this is over doing it a little.

I do see a risk of 100% loans being in a very heavy negative equity position in the near future (if/when the FHOG is reduced/eliminated). Combine this with rising interest rates and there could be a lot of first home buyers at risk.

 

[Qlds007]

Rolf you were right it lasted around 7 days before they withdrew it from the franchise market.

 

[Peter_Tersteeg]

As Richard has suggested, franchises and broker channels are back to the same policies - 95% LVR plus evidence of genuine savings...

RAMS 100pc mortgage cut from franchise channel
Friday, 27 March 2009

Less than a week after withdrawing its no deposit home loans from the broker channel RAMS Home Loans has today announced the product will also be axed from the franchise network.

A RAMS spokesperson confirmed with Mortgage Business that its maximum LVR for its franchise network would now fall to 95 per cent.

The 3 per cent genuine savings requirement announced to brokers on Monday will also apply to the franchise network.

“These changes are based on maintaining a long-term risk-based approach to lending to ensure RAMS remains viable into the future,” the spokesperson said.