Thursday, February 19, 2009

Jumbo conforming rolling back to $729,750 for rest of 2009.

However, as you should know by now, just because it was signed doesn’t make it effective immediately.

Here’s what needs to happen before you can get a $729,750 loan (sent by one of my wholesale lenders)

IMMEDIATE ATTENTION REQUIRED…

Recently, the President signed into law the new stimulus bill – called the American Recovery and

Reinvestment Act of 2009.

For conventional and FHA loans, the Act temporarily reverts the current loan limits back to the loan

amounts/levels allowed in 2008 with the Economic Stimulus Act. Three things must happen before

LENDER can accept loans with higher loan amounts:

1. The Agencies (Fannie Mae and Freddie Mac) and FHA must determine whether pricing, policy and/or

delivery requirements will be changed.

2. The Agencies and FHA must communicate their requirements to mortgage lenders.

3. LENDER must identify impacts caused by the Agencies’ and FHA’s requirements and implement the

changes.

Watch for additional information in the future about dates and specific changes. Until official notice of

the effective date for the American Recovery and Reinvestment Act of 2009 loan limits, Brokers should

continue to follow existing polices and processes regarding loan limits.

Sunil Sethi

www.sunilsethi.com

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