Xceed has made big cuts to its alternative lending offerings. According to a company email, the mostly-subprime lender will no longer offer the following uninsured mortgages:
- 100% financing (Xceed’s new maximum uninsured loan-to-value is 95%)
- Variable and adjustable rate mortgages
- Absence of Credit solutions
- 1 & 7 year terms
It seems, as one industry executive told us, that no subprime lender’s business model is safe in this environment. There’s just very little profit and funding right now to support higher risk mortgages.
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Seperately, Xceed is lowering rates on some of its remaining three and five-year uninsured products by 40-60 basis points “across the board.”
Big news! Thanks for the scoop.
On the Xceed conference call, Ivan tried to
sound upbeat and positive, but you could
tell that things were not great in Xceedland.
I’m not sure what Xceed’s business model is anymore. Rate & feature wise they are not that competitive on their A offerings, and their B products seem to be going up in smoke. I hope they turn it around.