Mortgage Topics

As first reported by us in our Janaury 2009 newsletter, The American Recovery and Reinvestment Act of 2009, to be signed into law by President Obama tomorrow in Denver, will temporarily revert the current loan amounts/levels back to $729,750 in high cost areas.

After the President signs the bill into law, three things MUST happen before lenders can accept applications with higher loan amounts (between $417,000 and $729,750):

1. Fannie Mae and Freddie Mac (the agencies) and FHA  must determine whether the pricing, policy and/or delivery requirements will be changed.

2. The agencies must report their requirements to mortgage lenders.

3. Lenders must identify impacts caused by the agencies' and FHA's requirements and implement the changes.

Stay tuned for further information on dates and specific changes to the higher balance conforming loans.