do PRIME neg-am loans exist?

[sniglet]

Does anyone know if there such a thing as a negative amortization prime mortgage, or all neg-am offerings either sub-prime or Alt-A? Is it also the case that there is no such thing as a 100% financed prime mortgage?

I am just trying to get an understanding as to whether it is only sub-prime or Alt-A borrowers who might find themselves with little or no equity.

[Robroy]

[rose-colored-coolaid]

[jillayne]

Hi Sniglet,

I believe they do exist. Reason why is that it use to be (ha, ha) very difficult to get a pay option/interest only/negative am ARM loan. A homeowner was required to have a very high "prime" credit score. I'm guessing these would be vintage 2005/2006 and older. 2006 and after, the wholesale lenders started competing with each other very heavily and we saw credit score, underwriting guidelines and downpayment requirements go down drastically.

[Ubersalad]

Yes, option arm at one point was available only for strong borrowers. World Savings at one point had a very strong portfolio, and all they did was option arms.