|FHA Expanded Limits Legislation:
We're excited about this bill, which temporarily
increases the conforming loan limit in selected
Metropolitan Statistical Areas (MSAs). This
increase applies to loans originated through
December 31, 2008.
Jumbo sized loans with not-so-jumbo-sized
The increased loan limits will make loan
amounts greater than $417,000 available to
consumers in these designated markets. We
expect these consumers will have the opportunity
to purchase a home or refinance their existing
loan with improved pricing over jumbo loans.
Although the agencies have yet to establish
pricing, this scenario could be particularly
attractive to consumers by making purchase
money and refinance loans more affordable.
The bill sets FHA and conforming loan limits to
the lesser of $729,750 or 125% of an MSAs
median home sales prices. Regardless of the
median home price calculation, there will be no
MSA with conforming loan limits below $417,000
The word on the street is....
Although the details have not been finalized, we
believe the following products and parameters
may be eligible:
Purchase and refinance
Fixed rate mortgages and fully amortizing
Full documentation loans only
Please understand these are the initial
parameters and are subject to change prior to
final publication. Well let you know very soon
after they are finalized and communicate our
implementation plans at that time.
What happens next?
According to the bill, new loan limits are to be
established by HUD 30 days after the bill
becomes law, around mid-March. The GSEs
are assessing internal impacts to determine the
delivery approach required of lenders.
|> > One more reason having "RateWatch" information entered into our
system benefits our Customers and Clients!