R-015 Important Changes to the Closed-End Second Mortgage and Second Mortgage HELOC Products
Important Changes to the Closed-End Second Mortgage and Second Mortgage HELOC Products
Reduction of CLTV/HCLTVs effective immediately affecting loans in the pipeline as well as new loan submissions:
Closed-End Second Mortgage
- Reduction of CLTV:
- Purchase Transactions 89.99% and
- All Refinance Transactions: Rate/Term and Cash-out 85%
- AVM requirements: The Clear Capital AVM report must reflect a “Confidence Score” > 80% or a Forecasted Standard Deviation (FSD) maximum of 20% (0.2)
Second Mortgage HELOCs
- Reduction of the maximum HCLTV for all refinance transactions to 85%
- AVM requirements: The Clear Capital AVM report must reflect a “Confidence Score” > 80% or a Forecasted Standard Deviation (FSD) maximum of 20% (0.2)
If you have any questions, please contact your Account Executive or Client Relations Representative.
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