Mortgage Rates and News

Attached is the latest release from Fannie Mae on their Loan Limit Increase pursuant to the “Economic Stimulus Act of 2008”.  Following the FHA / HUD announcement yesterday, FNME has announced they will temporarily (through December 31, 2008) be increasing their maximum loan limits. 

We do not have any pricing indications for this product yet nor do we know the exact loan limits.  However, FNME said it is using the same HUD (125 percent of the median home value) as FHA announced yesterday and the new FHA maximum limit for Sacramento and surrounding counties is $580,000. Unless FNME has another method of calculating percentages we should be in that range. 

Fannie will not begin purchasing these loans until at least April 1, 2008 and we do not have any indication yet as to when our investors will start offering the product.  We do know that the new loans above the existing limits of $417,000 will be pooled separately and sold as a different security.

With that said, the following guides will help you understand some of the limitations of the programs and the projected roll out times.

I will update you as we get more information and feel free to call or blog back if you have questions.

Yours truly,

Greg

60658_TemporaryIncreasetoOurConventionalLoanLimits.pdf

60658_Jumbo-ConformingMortgageMatrix.pdf