All Topics / Finance / Lodoc Rates up again

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  • Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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

    Profile photo of MortgagePlusMortgagePlus
    Member
    @mortgageplus
    Join Date: 2008
    Post Count: 83

    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.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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

    Profile photo of angela76angela76
    Participant
    @angela76
    Join Date: 2008
    Post Count: 11

    Wow 12.59% and I thought 10.69% was bad!!

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Angela

    Not wrong i totally agree.

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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

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