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First National drops 35-year ams

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Mortgage Broker News | 03 Apr 2012, 11:00 AM Agree 0
Brokers looking for 35-year amortizations on conventional mortgages for their clients have one less place to turn to with the announcement by the broker channel’s second-largest lender by market share that it is eliminating the product from its stable of offerings.
  • mortgage guy | 04 Apr 2012, 04:22 AM Agree 0
    "She said the decision had nothing to do with CMHC nearing its government mandated $600 billion ceiling, which has put some limits on lenders’ access to bulk insurance."

    Ya right! Who is she trying to kid?
  • Rob Stanfield | 04 Apr 2012, 04:51 AM Agree 0
    Mortgage Guy is wrong, First National does not insure conventional deals like other lenders, so it would have nothing to do with CMHC. The 35 year amortization was a product that First National offered that did not require the client to insure or the lender to pay an insurance premium. They are probably just looking at the bulk of lenders not offering a 35 year amortization so why do they have to offer it and take unnecessary risk. Yes, this option will be missed as I have used it quite a bit, but they are a great lender and will continue to be one.
  • Shortened amortization | 05 Apr 2012, 03:16 AM Agree 0
    The remark that shortening the max amortization period may hurt a certain segment of the population is quite valid. It may at times make the difference, so perhaps a "hybrid" option should be preferred - something like approving the mortgage based on a 25 year amortization, however allowing approved borrowers to opt for 35.
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