Flagstar Bank, Troy, Mich., will no longer originate on a wholesale basis conventional products with a loan term longer than 30 years, according to a notice posted through the LendingArt messenger alert system. This goes into effect on June 12; all of the loan applications affected must be locked by June 11. According to the posting, the following product types which may have terms of 35 or 40 years are affected: Fannie Mae 40-year fixed rate; Fannie Mae MyCommunityMortgage; Fannie Mae 3/1, 5/1 & 7/1 LIBOR adjustable-rate mortgages; Freddie Mac Home Possible; and Fannie Mae High Balance.
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