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MYRTLE BEACH, SC-Standards for 125% loan-to-value ratio products are getting more rigorous, a group of lenders told the South Carolina Mortgage Brokers Association annual convention here.
Furthermore, it was noted, secondary market investors in these loans are changing the guidelines for the product at a breakneck pace.
An originator may send in a package for a 125% thinking it meets the guidelines, only to find out it no longer qualifies, said Bob Derr of NuMAX Mortgage.
"This is the beast" originators have to deal with, he declared. But as the guidelines are getting stricter, investors are allowing loan amounts to get larger he said.
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