Subject: Jumbo High LTV Loan Product Suspension
Date: March 27, 2018
As a result of AIG’s continued focus on securitizing jumbo loans, combined with the constraints around MI insured jumbo loans within the securitization market, AIG Correspondent Lending will be suspending our jumbo High LTV Loan Products. In the past several months the jumbo High LTV Loan Products have made up less than 1% of our volume, therefore we anticipate minimal impact as a result of this change.
Since mid-2017, AIG has issued three jumbo securitizations comprised of jumbo loans with LTVs of 80% or lower with a cumulative total of over $1.5 Billion. AIG will continue to pursue these jumbo loans as we remain active in the securitization market.
This suspension impacts all High LTV Loan Products offered in the current Jumbo Underwriting Guidelines with a LTV/HCLTV over 80%. The product suspension will be effective as of April 1, 2018. The AIG Pricing Desk will honor all existing locks for loans with a LTV/HCLTV exceeding 80%. Expired rate locks for loans with a LTV/HCLTV over 80% will not be re-locked.
This announcement applies to all loans not yet purchased. Please contact Shane Larscheid, Vice President of Sales with any questions related to this announcement.