Jumbo market freezing up (plus details on the CLL increase)

[TheBreeze]

Pretty good article from the San Francisco Chronicle out today. Some quotes:

When Fannie and Freddie start buying these newly conforming loans, they should become cheaper than jumbos, but that probably won’t happen until early April.

…

“I have a lot of loans that normally should be closed by now,” Webster says. The new law “is making it difficult for people to pull the trigger.”

Webster says some lenders are not eager to make new jumbos (and thus are pricing them higher) because they’re afraid borrowers will refinance them as soon as the new loans become available.

…

The stimulus bill, HR5140, requires the U.S. Department of Housing and Urban Development to publish a list of the new conforming loan limits by March 14.

“We plan to have it out in early March,” says Lemar Wooley, a spokesman for the department.

He says the new limits will be based on the median home price in the county where the property is located, except for properties that lie in multi-county Metropolitan Statistical Areas. In those MSAs, the limit will be pegged to the highest-cost county.

The San Francisco MSA includes San Francisco, Marin, San Mateo, Alameda and Contra Costa counties. January median prices in these counties ranged from $487,750 in Contra Costa to $845,000 in Marin, according to Dataquick.

…

Freddie Mac expects to start buying the newly conforming loans “about a month after HUD determines the metro areas that are affected,” says Freddie Mac spokesman Doug Duvall.

Freddie first has to develop systems to handle dozens of new price ceilings and probably will have to raise new capital before it can buy lots of big, new loans.

…

“Generally, if we don’t own the loan, we require a borrower to have been in the loan for 12 months before refinancing,” Freddie Mac’s Duvall says. “However, if we already own the mortgage, then there is no ‘seasoning’ requirement.”

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/17/BUFIV311L.DTL

That line about Freddie needing to raise capital is interesting. With all the writedowns that Fannie and Freddie are taking, I wonder if either of the GSEs has the capital to buy any new loans. Personally, I would like to see the GSEs go into receivership so that the government couldn’t buy or guarantee any mortgages.

[drunkle]

http://www.reuters.com/article/companyNews/idUSN1534701620080215

jumbos are apparently going to be separate from “normals”.

fannie mae is reportedly really really really late on financial reporting… speculation being they got a lot of esplainin to do…

[drunkle]

http://www.reuters.com/article/companyNews/idUSN1534701620080215

jumbos are apparently going to be separate from “normals”.

fannie mae is reportedly really really really late on financial reporting… speculation being they got a lot of esplainin to do…

[drunkle]

http://www.reuters.com/article/companyNews/idUSN1534701620080215

jumbos are apparently going to be separate from “normals”.

fannie mae is reportedly really really really late on financial reporting… speculation being they got a lot of esplainin to do…

[drunkle]

http://www.reuters.com/article/companyNews/idUSN1534701620080215

jumbos are apparently going to be separate from “normals”.

fannie mae is reportedly really really really late on financial reporting… speculation being they got a lot of esplainin to do…

[drunkle]

http://www.reuters.com/article/companyNews/idUSN1534701620080215

jumbos are apparently going to be separate from “normals”.

fannie mae is reportedly really really really late on financial reporting… speculation being they got a lot of esplainin to do…

[HLS]

It’s foolish for anyone to assume that the “new” conforming loans will be priced the same way as existing $417K and below.

Even though there is a spread between conf & jumbo today, even the current jumbo rates are low by historical standards.

Wait until conf rates are 7%-8% again…

The new plan is only in effect until 12/31/2008 at this time, and many people just won’t qualify full doc for the new loans.

Wiat until you see the rates & programs. They may not be much better than current jumbo rates, which have eased a bunch the last few months.

It’s not frozen up anymore from what I see.

[HLS]

It’s foolish for anyone to assume that the “new” conforming loans will be priced the same way as existing $417K and below.

Even though there is a spread between conf & jumbo today, even the current jumbo rates are low by historical standards.

Wait until conf rates are 7%-8% again…

The new plan is only in effect until 12/31/2008 at this time, and many people just won’t qualify full doc for the new loans.

Wiat until you see the rates & programs. They may not be much better than current jumbo rates, which have eased a bunch the last few months.

It’s not frozen up anymore from what I see.

[HLS]

It’s foolish for anyone to assume that the “new” conforming loans will be priced the same way as existing $417K and below.

Even though there is a spread between conf & jumbo today, even the current jumbo rates are low by historical standards.

Wait until conf rates are 7%-8% again…

The new plan is only in effect until 12/31/2008 at this time, and many people just won’t qualify full doc for the new loans.

Wiat until you see the rates & programs. They may not be much better than current jumbo rates, which have eased a bunch the last few months.

It’s not frozen up anymore from what I see.

[HLS]

It’s foolish for anyone to assume that the “new” conforming loans will be priced the same way as existing $417K and below.

Even though there is a spread between conf & jumbo today, even the current jumbo rates are low by historical standards.

Wait until conf rates are 7%-8% again…

The new plan is only in effect until 12/31/2008 at this time, and many people just won’t qualify full doc for the new loans.

Wiat until you see the rates & programs. They may not be much better than current jumbo rates, which have eased a bunch the last few months.

It’s not frozen up anymore from what I see.

[HLS]

It’s foolish for anyone to assume that the “new” conforming loans will be priced the same way as existing $417K and below.

Even though there is a spread between conf & jumbo today, even the current jumbo rates are low by historical standards.

Wait until conf rates are 7%-8% again…

The new plan is only in effect until 12/31/2008 at this time, and many people just won’t qualify full doc for the new loans.

Wiat until you see the rates & programs. They may not be much better than current jumbo rates, which have eased a bunch the last few months.

It’s not frozen up anymore from what I see.

[Author]

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