Feb. 18, 2008


  • It is retroactive to mortgages originated from July 1, 2007
    Jay Johnson
  • I think under mortgage lending activity you meant July 1, 2008 and not July 1, 2007?
    Nancy Harris
  • Excellent comment to include. The $729K limit is the maximum but your description of the variance between MSAs is correct.
    Jay Johnson
  • I think it is important to point out that the increase in the conforming loan limit will only apply to a certain number of MSAs whose aveage home price is considered high. The 40 or so that will be affected are mostly in costal areas. Furthermore, the limit will increase to 125% of average home prices but not to exceed 175% of the current limit. For example, if the Los Angeles MSA average home price is $500,000, their new limit will be $625,000 (125% of $500,000). Last, selling those loans to the secondary market will certainly have credit, pricing and delivery restrictions (i.e. LTV and FICO limits and a delivery fee). It will not be a simple as delivering a higher loan balance as conventional/conforming.