Comments on: New Conforming Loan Limits for Washington State http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/ Seattle's Leading Resource for Real Estate Information Sat, 20 Mar 2010 05:05:28 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Rhonda Porter http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-317793 Rhonda Porter Fri, 16 May 2008 19:36:18 +0000 http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-317793 Ted, we've been lending at these limits for a few months now. All the banks/lenders offer it that I know of. Ted, we’ve been lending at these limits for a few months now. All the banks/lenders offer it that I know of.

]]> By: Ted Canto http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-317792 Ted Canto Fri, 16 May 2008 19:30:24 +0000 http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-317792 Do you know of any wholesale lenders that are now lending on this new loan limit? Please let me know who!! Help! Do you know of any wholesale lenders that are now lending on this new loan limit? Please let me know who!!

Help!

]]> By: laxtosnoco http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-279534 laxtosnoco Fri, 07 Mar 2008 16:51:25 +0000 http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-279534 You know, I was fully prepared to hate the new program because I don't think FHA or the GSE's should be in the jumbo business. However, after looking at the details I think the underwriting guidelines look pretty responsible. My only question is how many folks are going to meet these guidelines? These aren't the old Countrywide portfolio jumbos for sure. See the lending matrix at: https://www.efanniemae.com/sf/mortgageproducts/pdf/jumbomatrix.pdf -Max CLTV: 90% on purchases (more if in a 'declining market') - DTI: 45% maximum, with all ARMs qualified based on the fully amortizing payment at the higher of the note rate or fully-indexed rate -Credit: Minimum 660 FICO (or higher depending on LTV), no mortgage lates for at least 12 months You know, I was fully prepared to hate the new program because I don’t think FHA or the GSE’s should be in the jumbo business. However, after looking at the details I think the underwriting guidelines look pretty responsible. My only question is how many folks are going to meet these guidelines? These aren’t the old Countrywide portfolio jumbos for sure.

See the lending matrix at: https://www.efanniemae.com/sf/mortgageproducts/pdf/jumbomatrix.pdf

-Max CLTV: 90% on purchases (more if in a ‘declining market’)

- DTI: 45% maximum, with all ARMs qualified based on the fully amortizing payment at the higher of the note rate or fully-indexed rate

-Credit: Minimum 660 FICO (or higher depending on LTV), no mortgage lates for at least 12 months

]]> By: Catching Z-Z-Z’s Zillow on Mortgage | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-279046 Catching Z-Z-Z’s Zillow on Mortgage | Rain City Guide | A Seattle Real Estate Blog... Fri, 07 Mar 2008 06:51:48 +0000 http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-279046 [...] Catching Z-Z-Z’s Zillow on Mortgage March 6, 2008 No…Zillow with mortgage is NOT boring…quite from it. I’m just a bit worn out after the historic day we’ve all gone through in the mortgage industry today and I’m ready to call it a night. However, just when I’m going to unplug my laptop…Zillow finally provides the public with some more clues on how Zillow will integrate mortgages on their site. [...] [...] Catching Z-Z-Z’s Zillow on Mortgage March 6, 2008 No…Zillow with mortgage is NOT boring…quite from it. I’m just a bit worn out after the historic day we’ve all gone through in the mortgage industry today and I’m ready to call it a night. However, just when I’m going to unplug my laptop…Zillow finally provides the public with some more clues on how Zillow will integrate mortgages on their site. [...]

]]> By: Roger Ingalls http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-279020 Roger Ingalls Fri, 07 Mar 2008 06:13:36 +0000 http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-279020 Well, I will attempt to answer my own question to some degree, based on some not so lazy research, and then subject the answer to the critisicm and refinement of the good readers of RCG. The 30 yr fixed rate is not based on the 10 yr T-note (I already knew that, thanks to MMG), but there has historically been a high degree of correlation. The 30 yr fixed rate is based on Mortage Backed Securities (MBS) which is essentially determined by what investors are willing to pay for them. Since the 10 yr T-note and MBS were both generally perceived to very low risk investment, with a similar yield, they tracked closely. Today, MBS are considered to be a considerably higher risk that the 10 yr T note, and investors want a higher return for that risk. There is some concern that investors do not want MBS at all. I have a fairly interesting article on the subject, but I do not know how to post a document in here, only links. I know, I am a troglodyte! Well, I will attempt to answer my own question to some degree, based on some not so lazy research, and then subject the answer to the critisicm and refinement of the good readers of RCG.

The 30 yr fixed rate is not based on the 10 yr T-note (I already knew that, thanks to MMG), but there has historically been a high degree of correlation.

The 30 yr fixed rate is based on Mortage Backed Securities (MBS) which is essentially determined by what investors are willing to pay for them.

Since the 10 yr T-note and MBS were both generally perceived to very low risk investment, with a similar yield, they tracked closely.

Today, MBS are considered to be a considerably higher risk that the 10 yr T note, and investors want a higher return for that risk.

There is some concern that investors do not want MBS at all.

I have a fairly interesting article on the subject, but I do not know how to post a document in here, only links. I know, I am a troglodyte!

]]> By: Rhonda Porter http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-278958 Rhonda Porter Fri, 07 Mar 2008 03:47:46 +0000 http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-278958 Woops...look like I was reporting faster than my fingers could type! Corrections to come soon...what a day! Woops…look like I was reporting faster than my fingers could type! Corrections to come soon…what a day!

]]> By: Rhonda Porter http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-278956 Rhonda Porter Fri, 07 Mar 2008 03:46:42 +0000 http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-278956 rr - Conforming and FHA have the same limits for King County, Pierce and Snohomish Counties. I know my posts may seem redundant today...FHA was announced first and conforming next. I was reporting as the news came rolling... :) rr – Conforming and FHA have the same limits for King County, Pierce and Snohomish Counties. I know my posts may seem redundant today…FHA was announced first and conforming next. I was reporting as the news came rolling… :)

]]> By: Rhonda Porter http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-278955 Rhonda Porter Fri, 07 Mar 2008 03:43:54 +0000 http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-278955 <p>Roger, I'm so glad you asked that. NO it's not a typo. <strong>Fannie and Freddie can buy loans up to the new conforming limit (jumbos) that have not yet been purchased by Wall St that are from July of last year.</strong> This will hopefully free up credit lines and will (hopefully) trickle down to benefit the consumer.</p> <p>If the add to rate is 1.00 or more, the raise in conforming limits was for this purpose only. It may not be as beneficial as we had hoped as LOs. </p> Roger, I’m so glad you asked that. NO it’s not a typo. Fannie and Freddie can buy loans up to the new conforming limit (jumbos) that have not yet been purchased by Wall St that are from July of last year. This will hopefully free up credit lines and will (hopefully) trickle down to benefit the consumer.

If the add to rate is 1.00 or more, the raise in conforming limits was for this purpose only. It may not be as beneficial as we had hoped as LOs.

]]> By: Roger Ingalls http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-278948 Roger Ingalls Fri, 07 Mar 2008 03:36:22 +0000 http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-278948 Rhonda: Where did that July 1, 2007 date come from? Typo? Does the press release mean that these will not be available until July 1 of 2008? Rhonda:

Where did that July 1, 2007 date come from? Typo?

Does the press release mean that these will not be available until July 1 of 2008?

]]> By: Roger Ingalls http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-278947 Roger Ingalls Fri, 07 Mar 2008 03:33:08 +0000 http://raincityguide.com/2008/03/06/new-conforming-loan-limits-for-washington-state/#comment-278947 I believe"rr" is right. It looks like Rhonda grabbed the numbers from the row 1 up, after the first one. It's been a pretty hectic day, has it not? I believe”rr” is right.

It looks like Rhonda grabbed the numbers from the row 1 up, after the first one.

It’s been a pretty hectic day, has it not?

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