by Calculated Risk on 2/14/2007 03:18:00 PM

From MarketWatch (hat tip: REBear): Accredited Home stops making riskier loans

Accredited Home Lenders said on Wednesday that it has stopped making some riskier types of loans as the market for low-end mortgages showed signs of a mini credit crunch.

Hey, there it is ... "mini credit crunch". I was wondering when that phrase would appear in a story.

"In response to what we were hearing from the whole loan buyers, we began making adjustments to products with high combined loan-to-value ratios, products with low credit scores and products with less than full income documentation," Joseph Lydon, chief operating officer of Accredited, said during a conference call with analysts on Wednesday.

Accredited eliminated stated income loans with higher combined loan-to-value ratios (CLTVs) to borrowers with FICO credit scores of less than 640, Lydon explained. ...

The company also curtailed first-time homebuyer programs and dramatically reduced combo loan products, helping to significantly cut back second mortgage loans, he added.