Loan Pricing
Recourse fees, rate comparisons, and Borrower Monthly Savings
Flow Program Recourse Fees (bps)
|
FICO Score |
Reps & Warrants |
Limited Indemnity |
||
|
100% LTV |
97% LTV |
100% LTV |
97% LTV |
|
|
700+ |
77 |
66 |
67 |
56 |
|
660-699 |
81 |
77 |
71 |
67 |
|
620-659 |
115 |
94 |
105 |
84 |
|
Note: Fees are quoted on note rate, not on price. |
||||
Self-Help’s limited indemnity credit enhancement is offered on loans where
the lender holds credit risk for a specified period of time, after which the
credit risk is assumed by Self-Help. In the case of 100% LTV loans, Self-Help assumes
the credit risk after 12 clean payments from the borrower. For loans with an
LTV of 97% or less, the recourse flips to Self-Help after 9 months of clean
payment history.
Rate Comparison with Fannie Mae “My Community Mortgage” loan
|
|
620-659 FICO |
|
|
MCM 100 Credit Rating |
Self-Help Product, Par Execution |
|
|
Rate* |
5.873 |
5.873 |
|
Rate, no MI |
6.748 |
7.600 |
|
MI Fee |
1.020 |
0.000 |
|
Borrower’s Rate, including MI |
7.768 |
7.600 |
* 30-year fixed, S/S, 45-day lock, par rate
**
Assumes a multiple of 4 to arrive at 1 point LLPA in price for MCM and 75 bp
LLPA for Self-Help Product. Both are converted to yield.
Borrower Monthly Savings with Self-Help
|
|
620-659 FICO |
|
|
MCM 100 Credit Rating |
Self-Help Product |
|
|
Sales Price |
$150,000 |
$150,000 |
|
Note Rate |
6.810% |
7.663% |
|
MI Rate |
1.02% |
|
|
Monthly MI Payment |
$128 |
|
|
Monthly PI |
$979 |
$1,066 |
|
Total Monthly Payment |
$1,106 |
$1,066 |
|
Self Help Payment Advantage |
|
-$40 |
In this example, the Self-Help product generates a monthly mortgage payment
savings of $40 when compared to the MCM product, for an annual savings of $480.
Other payment savings are in the next table:
|
LTV |
FICO |
All-In-Interest Rate |
Borrower’s Monthly payment advantage with Self-Help Product |
Borrowers Annual Payment advantage with Self-Help Product |
|
|
Self-Help |
MCM |
||||
|
100% |
620-659 |
7.663 |
7.830 |
$40 |
$480 |
|
100% |
660-699 |
7.323 |
7.450 |
$28 |
$336 |
|
100% |
700+ |
7.283 |
7.400 |
$26 |
$312 |
|
97% |
620-659 |
7.453 |
7.590 |
$32 |
$384 |
|
97% |
660-699 |
7.283 |
7.400 |
$26 |
$312 |
|
97% |
700+ |
7.173 |
7.280 |
$22 |
$264 |
Portfolio Program Prices
Portfolio program prices are negotiated on a case-by-case basis. See our programs for more information about this
program.
* No MI * Saleable * CRA Qualifying * 100% LTV
