Alt-A to $3 Million

LoanCity announces Alt-A expansion
By MortgageDaily.com staff
2/9/2006

A California-based wholesale mortgage lender upgraded its Alt-A loan offerings.

LoanCity recently announced it expanded its Alt-A program by increasing loan limits to $3 million for first mortgages and to $600,000 for Alt-A second mortgages.

The new program includes "piggyback" loan combinations to $2 million with a single underwrite. Loan types reportedly include 30-year and 15-year fixed rate mortgages to a variety of LIBOR-priced adjustable-rate mortgages, all with interest-only options and 95% loan-to-value/100% combined LTV ratios, the San Jose, Calif.-based company said.

"Our enhanced Alt-A program addresses the market demand for larger loan sizes for both first and seconds and gives brokers the flexibility and the pricing they'll need to do business in a more competitive environment," Chief Executive Rick Soukoulis said in the written statement. "Best of all, our program is easy to use, and thanks to our advanced automated underwriting engine, delivers decisions and stipulations in conforming loan time frames."

Primary residences, second homes and investment properties are eligible for the program, according to the announcement.

"Alt-A is a make or break product for many mortgage brokers," Soukoulis added. "So, it's hardly surprising that brokers are beginning to select their wholesalers based on the lenders' understanding and commitment to this product category."

LoanCity reported 2005 volume across 47 states totaled $7 billion.

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