With the new HELOC rule changes that are to come into affect later this year, One lender has already chosen to make the change early:
Effective September 6, 2012, MCAP will be limiting the maximum Loan to Value (LTV) on both our HELOC first and second mortgage product (Home Account and Home Account Plus) to 65%. Furthermore, the maximum combined LTV of an amortizing first and HELOC second will be 80%.
In order to ensure we can process your deals in a timely manner, the deadline for submissions of HELOC’s under the old rules (max 80% LTV), will be 8pm EDT Wednesday, September 5, 2012. Beginning start of business Thursday, September 6, 2012, the new rules will come into effect.
Please feel free to contact me directly if you have any questions or concerns.