Higher Loan Limits Announced!

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Filed under: Market Comentary

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Today I’m sharing details about a few pieces of news in the industry that you need to know. Whether you are in the real estate business or you are a homeowner, it is important to keep up with the trends.

Here are a few points of interest that happened this week:

Conventional Loan Limits

Yesterday, the FHFA announced their new guidelines for the new conforming limit throughout the US as well as the high-cost areas. The base conventional loan size is going up to $453,100, which is an increase of about 7%.

In our area, we are right about at that limit in regards to the median home price. This change is important because it keeps people out of the jumbo loan range. Increasing the conventional loan amount means that more people will qualify for a conventional loan for higher-priced homes. Limits also went up in high-cost areas, including San Diego, Orange, and LA counties.

In my opinion, I think these changes are good for the market. We are continuing to see increases in home values, and these changes allow conventional lending to keep up with the trends in the industry.

Richard Cordray, The Head of CFPB Stepped Down

Another interesting piece of information is that the head of CFPB stepped down. The Consumer Financial Protection Bureau oversees a lot of lenders and financial institutions. It is a highly politicized move that Richard Cordray stepped down.

Right now an interim person is in place, who has been very outspoken about being against the CFPB. It is hard to know how this will affect the industry, but there will definitely be some changes that are coming our way. It could result in adjustments to the regulatory practices, which have been a bit overreaching up until this point. So, the change in the bureau could be an opportunity to make positive adjustments in the industry.

Like all political topics, time will tell if we will see significant changes. It will be interesting to see how things unfold going forward

I’ll keep you posted if anything comes from these changes. Also, you are always welcome to contact our team here at Franklin Loan Center if you have questions or need assistance with your mortgage or refinance. We are here to help!

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