Fifth Third Says ‘No Way’ to Alt-A

A new memo from Fifth Third notifies recipients that effective immediately (with a little time to fund the existing pipeline) that the bank is out of the Alt-A business entirely. And in a refreshing turn - all sales channels are affected. Retail and wholesale alike will lose Alt-A products previously offered by the “super-regional” bank.

Here’s a copy of the announcement:

Important Announcement
Please circulate as appropriate

BULLETIN

Announcing Alt A Lending Program Discontinued
Effective In All Channels

To: All Mortgage Sales and Operational Personnel

Fifth Third Mortgage is announcing they are discontinuing offering Alt A lending programs in all Channels.

What needs to happen in managing your pipeline:

Retail/Direct:

• All Alt A applications in the pipeline dated on or before Monday May 5, 2008, must be locked by close-of-business Monday May 5, 2008 by 5PM Eastern Standard Time.
• All loans must be closed by May 23, 2008

Wholesale:

• All Alt A applications in the pipeline must be registered and locked by close-of-business Friday May 2, 2008, by 5PM Eastern Standard Time.
• No registrations will be accepted after 5PM Eastern Standard Time, May 2, 2008
• All loans must be closed and funded by May 23, 2008

NO EXTENSIONS WILL BE GRANTED TO CLOSE/FUND BEYOND MAY 23, 2008 (ALL CHANNELS)

Thank You,
Fifth Third Mortgage Company

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