Just received this email, no link

[Ramhock]

IMPORTANT MESSAGE TO LENDERS ONE MEMBERS -- WASHINGTON UPDATE

 

As part of the economic stimulus package being negotiated by House Democrats and the Treasury Department, Fannie and Freddie loan limits will increased for one year up to $730,000. The increase will be adjusted for local markets at 125% of local median home price. The move will significantly improve liquidity and pricing in the jumbo market. The agreement also includes raising the FHA loan limits to the same amount. We are trying to confirm whether the other provisions of FHA reform will be included (such as lowering downpayment requirements). But at a minimum, the loan limits will be increased.

 

This represents an agreement in principle and must still go through the legislative process. My best guess is that will happen sometime after the State of the Union next week, likely progressing into early February.

 

This is the most significant action to date proposed by the federal government to stabilize the housing market. Lenders One/National Alliance of Independent Mortgage Bankers have worked hard to make this a reality and we will continue to keep you posted on our progress.

 

 

If you are in processing on a Jumbo loan, you may want to consider waiting!

Edited January 24, 2008 by Ramhock

[muck]

Q: What if 125% of the median regional home price is less than $417,000 (the current limit, which is applied nationwide)? Do you get to use the old $417,000, or are you required to drop down to 125%?

[yo mama]

I heard the cap was going to be a lower $625,000, and that it would only apply for one year. Though, the National Association of Realtors is pushing for a permanent increase.

Edited January 25, 2008 by yo mama

[dmarc117]

To widen the availability of mortgages across the country, it also provides a one-year boost to the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets.

 

this all still has to get passed thru the senate too.