Fifth Third Eliminates Stated Income Loans

The retail channel of Fifth Third has just eliminated their Quick & Simple loan program (aka stated income) effective this Thursday.  Thanks to reader Chris for sending this in. The best sentence of the announcement? "Reminder: There is no guarantee that the Mortgage Insurance providers will insure these loans.  All Quick & Simple  loans > 80% LTV must have MI in order to close."  As many commenters have stated throughout the changing product guidelines, the MI companies have become the "800 pound gorillas" that will control the fate of many of these products.  Without companies willing to underwrite the mortgage insurance on these loans it really doesn't matter what the banks or Fannie and Freddie do or don't do on > 80% LTV