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But, this sales representative said, Countrywide's software prevented the input of cash reserves so borrowers would have to be pitched on pricier loans.
The mortgage lender also recorded an impairment charge of $831 million tied to securities backed by prime home equity lines of credit typically reserved for borrowers with excellent credit histories.
"Although we have recently recorded the average loan to value rising back up to 75%, most of the very best deals are still reserved for borrowers with 40% equity in their homes," says Michelle Slade, spokesperson for Moneyfacts.
While the keenest rates in today's embattled mortgage market are still reserved for borrowers sitting on a comfortable equity cushion of 40percentnt of their property value, there is one thing lenders still don't discriminate on; access to the lowest rates will cost you dear, no matter what your loan-to-value.
It includes a reserve fund, borrower default insurance and fraud and cyber crime insurance.
As of this past January, fewer than 1.1 million homeowners have refinanced through the program, which is reserved for borrowers whose loans are backed by Fannie Mae or Freddie Mac.
Despite the fact that you don't have to pay an arrangement fee at the time of reserving a rate, borrowers will have to factor in the inevitable need to pay them at the start of their new mortgage.
Delinquencies are expected to rise as borrowers exhaust reserve funds they established to cover their debt service while they waited for rents to go up.
And it turns out that developing country entrepreneurs, despite their hardship, do repay person-to-person loans at impressive rates: About 80% of Zidisha loans made in the last year are repaid or repaying on time, with those in arrears refundable to lenders from reserve deposits made by borrowers.
And in February, Lucent's debtors provided the company with $4.5 billion in short-term credit lines only after it agreed to conditions normally reserved for junk-status borrowers.
The bigger the borrower, the bigger the hit, and some banks, already hurt by a sliding stockmarket, might find it hard to meet capital-adequacy requirements if they reserved more against big borrowers.
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