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B lenders losing appetite for BFS

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Mortgage Broker News | 25 Sep 2012, 10:36 AM Agree 0
Paydays for BFS deals are fewer and farther between, as lender demands for paperwork in some cases doubles the wait time for brokers and borrowers alike.
  • Jessica | 26 Sep 2012, 06:09 AM Agree 0
    Not all B lenders have changed what they require! Deal with a MIC and likely the same criteria that applied for last five years still applies today. MICs are often much more flexible to deal with and not significantly higher pricing.
  • ayaz | 26 Sep 2012, 06:26 AM Agree 0
    That analysis is not quite true. We are still able to finance business for self clients through A lenders by reviewing the reasonability of income test and certainly we have no issues having these approved through B lenders in a very timely manner. Lets try and stay positive here and especially when we are still able to get deals funded!!!!!!!!!!!!!!!!
  • John W | 27 Sep 2012, 06:13 AM Agree 0
    just did a deal for a BFS client on a rental with $350,000 in declared income with Equitable. No problem, sailed right through!
  • anonymous | 27 Sep 2012, 06:35 AM Agree 0
    i have found in the past year that a great majority of B or mic fund lenders are not even returning calls or responding to submissions as they are all looking for bankable deals which they are able to charge higher rates and fees. There doesn't really seem to be a fit for un traditional financing any longer unless one has a quite good credit score and a loan to value of under 65% in a major city. Smaller communities don't fit any longer.
  • anonymous | 27 Sep 2012, 08:18 AM Agree 0
    $350,000 in declared income? obviously not privy to the debt servicing however $350,000 can service a lot of debt and regardless of BFS or not sounds like a bank deal and not Equitable.
  • whatever | 29 Sep 2012, 05:44 AM Agree 0
    350,000 declared is a pretty broad statement. what was the line 150? what was the ltv, was the rental income declared on the t1 gens....
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