Spike Lee didn’t make the movie Chi-Raq because Chicago was a peace loving inner city haven of roses and wine drinkers. Al Capone was Mother Theresa compared to the daily dose of multiple shooting in Chicago today.
One warning about Angel Oak – although their pricing on ‘bank statement’ programs has recently become quite favorable, I suspect they realize that maybe it’s squeezing their margins and have set the following trap (that no one else in the industry, including FNMA would treat as cash-out). Fortunately, my AE there was helpful and told me about this just prior to me submitting a full prequal to them. Unfortunately, I had already made the reasonable assumption that this wouldn’t be treated as a cash-out and got a little egg on my face with my client. Here’s the scenario:
– if your client has an existing HELOC (regardless of seasoning) that they want to keep (subordinate – not pay off or pay down, and no cash to borrower), it will be treated as a cash-out if there were any recent draws. If the HELOC were to be paid down or paid off and closed with loan proceeds, of course, it would be properly treated as a cash-out, but even FNMA treats this simple subordination scenario as a r/t refi as does all other ‘bank statement’ lenders. This is not disclosed anywhere with Angel Oak, so you could easily fall into this trap until you actually submit a loan (or at least a full prequal) to them.
– cash-out penalty is .25% to rate regardless of LTV. At least, this is fully disclosed on their program matrix and rate sheet, although other ‘bank statement’ lenders don’t impose a cash-out penalty if LTV below 60.
Spike Lee didn’t make the movie Chi-Raq because Chicago was a peace loving inner city haven of roses and wine drinkers. Al Capone was Mother Theresa compared to the daily dose of multiple shooting in Chicago today.
One warning about Angel Oak – although their pricing on ‘bank statement’ programs has recently become quite favorable, I suspect they realize that maybe it’s squeezing their margins and have set the following trap (that no one else in the industry, including FNMA would treat as cash-out). Fortunately, my AE there was helpful and told me about this just prior to me submitting a full prequal to them. Unfortunately, I had already made the reasonable assumption that this wouldn’t be treated as a cash-out and got a little egg on my face with my client. Here’s the scenario:
– if your client has an existing HELOC (regardless of seasoning) that they want to keep (subordinate – not pay off or pay down, and no cash to borrower), it will be treated as a cash-out if there were any recent draws. If the HELOC were to be paid down or paid off and closed with loan proceeds, of course, it would be properly treated as a cash-out, but even FNMA treats this simple subordination scenario as a r/t refi as does all other ‘bank statement’ lenders. This is not disclosed anywhere with Angel Oak, so you could easily fall into this trap until you actually submit a loan (or at least a full prequal) to them.
– cash-out penalty is .25% to rate regardless of LTV. At least, this is fully disclosed on their program matrix and rate sheet, although other ‘bank statement’ lenders don’t impose a cash-out penalty if LTV below 60.