ComNet Offers 3%-Down for Jumbos

A new 3%-downpayment jumbo mortgage has been introduced by Commonwealth Bank, Norristown, Pa., through its mortgage division, ComNet Mortgage Services.The 97% Loan-to-Value Jumbo Residential Mortgage is patterned after Fannie Mae's Flex 97 program, but will be offered for mortgages up to $400,000. The Fannie Mae product's loan limit is $227,150. A computerized underwriting system is used to evaluate credit risk and determine documentation requirements, Commonwealth said. "We are comfortable with the predictive nature of credit scoring models and wanted to expand the availability of a 3% downpayment mortgage beyond Fannie Mae/Freddie Mac loan limits," said ComNet president Peter A. Kehoe. "We have been successful originating the Flex 97 program for conforming loan sizes, and we wanted to take the program to a higher level. I am not aware of another lender in the country offering this product." ComNet ranked 89th in the nation in retail originations in the first quarter with $192 million, according to the Database Products Group, a MortgageWire affiliate.