If you expected the increase in conforming loan limits that was part of the "Economic Stimulus Act of 2008" to save the housing market, then you, like me, are still waiting. And you are still hoping.
You are hoping and waiting because, while these new maximum loan sizes have already been enacted, the pricing and the underwriting guidelines for these new "conforming jumbo" loans do not have what it will take to bring us out of the housing slump. And they certainly don't have what it will take to save some jobs in the mortgage industry. This second goal may not be an important public policy concern, and it may not generate a lot of support from the American public after the vilification of the mortgage industry in the media over the last year. Nevertheless, it is a mission that is dear and near to my heart (and to my financial and mental health).
The next posts will desribe the specific underwriting guidelines for these "conforming jumbo" loans that make a paper tiger out of these loan limit increases. I am reserving final judgement for a while to see if the pricing and guidelines will evolve and improve before asking Betamax, New Coke and Windows Vista to make room in Disappointment Hall of Fame.
I am also looking for a better term than the oxymoronic "conforming jumbo" for these loans and invite any suggestions.
Subscribe to:
Post Comments (Atom)
3 comments:
Jumbo's No More does anyone know if this pricing is every going to surface and what kind of adjustments will we see. I am hearing hits for score and of course LTV. Where did we all get the idea that pricing jumbo loans would be the same as conforming 30yr fixed.
nobody special: looks like better pricing may appear soon. Loosening of other restrictions (example: paying off subordinate financing) is still in question.
Not soon enough for most of us drowding in promisses that can't be delivered.
Post a Comment