Latest on loan limit debate in Washington. Now to Nov 18 is key.
Conforming Loan Limit
Today’s Originations links on the fourth quarter stock outlook, loan limit battle in Washington, and fallout from EU’s big decision. -Loan Limit Battle Looms In GOP House (WSJ Developments) -LATEST: Will Loan Limits Increase Again? (TheBasisPoint) -Why Greek CDS Market Is OK (FelixSalmon) -Fatal Flaw In Europe’s Rescue Plan (TheAtlantic) -Stocks Could Rally a Bit
[Critical Loan Limit Update on 11/18/2011] The U.S. Senate voted 60-38 yesterday to restore higher loan limits. This would raise the cap on Fannie, Freddie, FHA loans from the existing $625,500 (or lower depending on region) back to $729,750. Limits were just reduced to $625,500 as of October 1. The vote was on an amendment
[Critical Loan Limit Update on 11/18/2011] As of today, loan limits for high-cost areas drop from $729,750 to $625,500. Here are new limits and rate spreads between each of the U.S.’s three loan tiers. Late last week the Federal Reserve released its 2010 Home Mortgage Disclosure Act database that concluded that this loan limit drop
[Critical Loan Limit Update on 11/18/2011] As of today, loan limits for high-cost areas drop from $729,750 to $625,500. Here are new limits and rate spreads between each of the U.S.’s three loan tiers. Late last week the Federal Reserve released its 2010 Home Mortgage Disclosure Act database that concluded that this loan limit drop
Rates were down .25% last week—dropping below 4%—on a surprise Fed announcement that they’d buy mortgage bonds to support housing. Below is a recap of last week and a preview of next week to see if rate lows will hold. How Rates Dropped Below 4% Markets got the expected Operation Twist announcement Wednesday—a Fed plan
[Critical Loan Limit Update on 11/18/2011] Banks stopped accepting rate locks on high-balance conforming loans to $729,750 in early September because these loans must close before loan limits drop on October 1. Below are new loan limits as of October 1 and approximate rate spreads between each tier: Tier 1-TRUE CONFORMING: Lowest rates for loans
[Critical Loan Limit Update on 11/18/2011] Congress (80% of which has no background in business or economics according to TheHill.com) is on vacation, putting any talk of extending loan limits on hold, so high-balance conforming loan limits will be cut from $729,750 to $625,500 on October 1. Details here. But there is a rumor about
[Critical Loan Limit Update on 11/18/2011] We appear to be marching toward a reduction in the temporary loan limits, although there are numerous attempts to extend it. HUD weighed in last week with its FHA single-family loan limits which are effective on or after October 1, 2011 through December 31, 2011. Here are the FHA
Yesterday’s S&P Case Shiller May report showed home prices across 20 major U.S. metro areas were up 0.6% since April, the second straight monthly gain after seven straight months of decline. But prices are down 4.5% since last May, and prices are down 32.3% from June/July 2006 to May 2011. Case Shiller Index co-creator and
Today’s links on loan limits, debt ceiling options, U.S. and Europe’s debt quagmires, Finreg year 1, trading don’ts, and your best source for NFL news. -‘Sacred AAA Rating’ At Risk Even Without Default (InvestmentNews) -Debt Ceiling Charade: The 3 Smart Options (CalculatedRisk) -“Impossible Math” behind Euro Crisis (PragmaticCapitalist) -Mortgage Bankers Reverse Course On Loan Limits
Five-time Jeopardy winner Rich Cordray will be nominated by President Barack Obama to lead the Consumer Financial Protection Bureau. He is the former Ohio Attorney General (he lost his bid for re-election last November), and currently the assistant director for enforcement at the bureau. And to round things out, he was a onetime law clerk
-Areas most impacted by loan limit cuts (LendingTree Chief Economist) -Case Shiller Head David Blitzer on Home Prices & Foreclosures (S&P) -Google+ Reaches 10 Million In 2 Weeks (VentureBeat) -Why Loan Limit Cuts Aren’t a Big Deal (TBP) -Key Earnings Reports Next Week (Bespoke) -Debt Ceiling Charade (CalculatedRisk) -Interest Rate Stories (Krugman)
Mortgage loans have three rate tiers: (1) lowest rates for conforming loans up to $417,000, (2) .125% to .25% higher than tier 1 for super-conforming loans from $417,000 to $729,750, (3) .125% to .375% higher than tier 2 for jumbo loans above $729,750. The first two rate tiers are lower because Fannie Mae and Freddie
Rates remain near 2011 lows for the same reasons discussed last Thursday’s market recap: questionable economic recovery. Below is a summary and rate outlook for next week, plus I address panic about lower loan limits effective October 1. Since the New York Times published Fed Retreat on Bigger Loans Rattles Housing on May 10, I’ve
Rates remain near 2011 lows for the same reasons discussed last Thursday’s market recap: questionable economic recovery. Below is a summary and rate outlook for next week, plus I address panic about lower loan limits effective October 1. Since the New York Times published Fed Retreat on Bigger Loans Rattles Housing on May 10, I’ve
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