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.