There are still jumbo loans but there is an increase in rate to compensate for perceived (and real) increase in risk.
bob007, this is not a regulation change, it’s a change in the marketplace. The conforming loan limit has always been the maximum amount that the Government Sponsored Enterprises ( GSEs are FNMA or “Fannie Mae” and Freddie Mac … I forget the initials for old Fred) could purchase.
These entities were created to provide a secondary market for mortgage loans. The secondary market for loans above the conforming loan limit consists of many market participants, who are now scared of mortgage-backed securities and are either not buying the loans or are requiring much larger interest rate spreads to take on the risk.
