[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]
The version I read says:
The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.
“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]
OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.
It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?
EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.
