Lodoc Rates up again

Viewing 6 posts - 1 through 6 (of 6 total)

Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
July 15, 2008 - 12:56 am
I read this morning that clients of Colombus Capital will later this week receive by mail the next round of rate increases bring some of their lodoc / nodoc clients rates to 12.59%.
Must admit until a couple of weeks agao i hadnt even come across CC.
2 refinance enquiries later in 10 days and the doors have started to open.
Richard Taylor | Australia's leading private lender
MortgagePlus
Member
@mortgageplus
Join Date: 2008
Post Count: 83
July 15, 2008 - 3:38 am
Richard,
CC had some massive securitisation issues late last year. Fortunately, a lot of the loans they wrote were 3 yr Fixed.
Mid June, they issued a notice to all their existing variable clients notifying them of a 0.9% increase to Full Doc loans, and a 1.95% increase to their Horizon loans (which takes in Maxi 90% Lo Doc and Maxi 80% No Doc.
They were also big on using MGIC for LMI purposes, as their credit team had a DUA (Delegated Undewriting Authority) to sign off LMI in house.
A large portion of the displaced clients will have nowhere to go, as they did not fit GE PMI policy even back then. I think it is disgusting, and the ACCC and ASIC are investigating.
The killer blow is also that mostly, their DEF's are 1.9% (Full and Lo Doc).
Bummer for the clients in the middle of the entire fiasco.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
July 15, 2008 - 4:13 am
Ok Tim
Thanks for that not that big in Qld obviously.
Just wondered why all of these CC refinance enquiries where coming in all of a sudden.
Richard Taylor | Australia's leading private lender
angela76
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@angela76
Join Date: 2008
Post Count: 11
July 17, 2008 - 6:12 am
Wow 12.59% and I thought 10.69% was bad!!
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
July 17, 2008 - 6:50 am
Angela
Not wrong i totally agree.
Richard Taylor | Australia's leading private lender
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
July 18, 2008 - 12:51 am
Looks like Macquarie Mortgages have just put up their Low Doc loan rates again, as well as the full doc rates. They have their clients over a barrel – high exit fees, and they are not looking for anymore loan customers, so what have they got to lose:
1) Verified Income (full doc) loans
Existing business and pipeline loans
Borrower rate increased by 15bps

2) Stated Income and Self-Certified (low and no doc) loans
Existing business and pipeline loans
Borrower rate increased by 15bps
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au