CODI Loans? - Loan Modification Forum

Feelingtrapped · 02-18-2009, 01:08 PM

As I begin my California walk away adventure I contacted my servicer (First Federal of California) today to find out who the investor on my loan was.

After their typical loan modification speech ....blah, blah, blah.. They said my loan was tied to the CODI (Certificate of Deposit Index) index.

I tried to see if this was a Fannie or Freddie loan with the hopes I might benefit from the upcoming loan changes under the new plan announced today that effect Fannie and Freddie loans.

Does anybody know what CODI is and if this is a Fannie or Frieddie loan. I couldn't find this mentioned anyplace on the site?

Thanks
FT

California Conundrum · 02-18-2009, 05:00 PM

CODI is not a Fannie Mae Product. Your loan sounds like it was an adjustablte, perhaps a Pay Option type loan.

CODI/COSI/COFI are all typically portfolio lender loans, meaning they are held and owned by the bank who funded them.

Feelingtrapped · 02-19-2009, 08:49 AM

Ok, Thanks. I figured as much. It is an option-A loan so that would make sense.

Thanks Again.
FT

California Conundrum · 02-19-2009, 01:02 PM

Sure, happy to help. You have probably noticed that the rate being charged on your loan has decreased every month this year. CODI is a lagging index, meaning it takes time to catch up with rate trends. Dependant on the margin (2.5-3.5 is typical margin) in your contract, it can be expected that your loan will be charging you a rate in the 4-5% range within the next 6-12 months. So you might want to consider this expectation into your decision.

02-18-2009, 01:08 PM	#1 (permalink)
Feelingtrapped Member Join Date: Mar 2008 Posts: 28 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	CODI Loans? As I begin my California walk away adventure I contacted my servicer (First Federal of California) today to find out who the investor on my loan was. After their typical loan modification speech ....blah, blah, blah.. They said my loan was tied to the CODI (Certificate of Deposit Index) index. I tried to see if this was a Fannie or Freddie loan with the hopes I might benefit from the upcoming loan changes under the new plan announced today that effect Fannie and Freddie loans. Does anybody know what CODI is and if this is a Fannie or Frieddie loan. I couldn't find this mentioned anyplace on the site? Thanks FT

02-18-2009, 05:00 PM	#2 (permalink)
California Conundrum Junior Member Join Date: Feb 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: CODI Loans? CODI is not a Fannie Mae Product. Your loan sounds like it was an adjustablte, perhaps a Pay Option type loan. CODI/COSI/COFI are all typically portfolio lender loans, meaning they are held and owned by the bank who funded them.

02-19-2009, 08:49 AM	#3 (permalink)
Feelingtrapped Member Join Date: Mar 2008 Posts: 28 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: CODI Loans? Ok, Thanks. I figured as much. It is an option-A loan so that would make sense. Thanks Again. FT

02-19-2009, 01:02 PM	#4 (permalink)
California Conundrum Junior Member Join Date: Feb 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: CODI Loans? Sure, happy to help. You have probably noticed that the rate being charged on your loan has decreased every month this year. CODI is a lagging index, meaning it takes time to catch up with rate trends. Dependant on the margin (2.5-3.5 is typical margin) in your contract, it can be expected that your loan will be charging you a rate in the 4-5% range within the next 6-12 months. So you might want to consider this expectation into your decision.

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