I received this from BWC Mortgage today and thought I would
share this with you regarding the loan limits….

As Uncle Sam  continues to play an increasing role in
shaping the Lending industry, it goes without saying that the resulting familiar
government bureaucratic signature is not making it easier for Loan originators
and Lenders to navigate the constantly changing landscape.  HERA, HARP, HVCC,
ARRA, HOPE,  are all examples of the new age of  government concocted programs
to “fix” the broken industry.  The fact they are being designed by those with
scary  little knowledge of the industry,  ensures our jobs will become
increasingly challenging for the foreseeable future.

On the plus side, it looks like
High Balance loan limit increases are finally being rolled out
by the large industry players. I will
be forwarding further info on these programs as the info flows into m, but for
the time being here is what we know:

We have recently been operating under 2009 “Permanent” loan
limits established by HERA which allows for a loan limit of $625.5k.  This was a
reduction from last year’s temporary loan limit of $729k which was put in place
under the Economic Stimulus Act. This year , FNMA and FHLMC have announced their
intent to purchase loans back up to the $729k as the new Temporary limit
authorized under the American Recovery and Reinvestment Act (ARRA), but for some
reason, investors have been slow to adopt the new limits.  This is now
happening.  The following are the Investor Specific plans to offer the new
temporary loan limits. I realize this information leaves many questions
unanswered, as is typical as investors scramble to integrate the respective
changes to their own systems and product offerings. I will continue to trickle
out more detailed information as it is received:

Wells Fargo:  New loan limit
will be available Monday, May 11.

·
Loans locked on or before April 24
under the current High Balance conforming (HERA $625k) program that are switched
to the New $729k temporary limit (ARRA) can be relocked at current market on or
after May 11, 2009 and the standard renegotiation fee of .375 will not apply.  I
have not been able to confirm what the deal is if the current locked rate is
lower than pricing available on or after May 11.

·
Loans locked on and after April 27
and prior to May 11 under the current High Balance conforming (HERA $625k)
program that are switched to the New $729k temp limit (ARRA) will be subject to
standard repricing.  Please contact the lock desk for these to be repriced on a
loan by loan basis

BofA : New Loan Limit will
be available Friday, May 15

·
Final day to lock under current
Agency High Balance Guidelines is Thursday May 14

·
Extensions and relocks allowed on
current Agency High Balance as usual

·

DU
“Approve/Ineligible” decisions will be permitted if the only reason for
ineligibility is the maximum allowable loan limit and the loan meets the new
revised Agency High Balance guidelines.

DU “Approve/Eligible”
decisions on all high balance loans must also meet the new revised Agency High
Balance guidelines.

CLUES “Accept” decisions are acceptable.


Loans underwritten in Loan Prospector (LP) are not permitted.

Gateway: New Loan Limit Currently Available

·
Lock after approval only, Pricing
not in Latitude, Call Tony for Custom Quote

Flagstar: New Loan Limits Currently Available, Not in Latitude, Call Tony for
Custom Quote

CITI & CHASE: Still awaiting further clarification as to release dates

NEW LOAN LIMITS

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