Again, I must spread a rumor that I heard on the street. The Jumbo–Conforming loan product (up to $729,000 in some parts of the country) is being eliminated prematurely by FreddieMac.

 

The loan amounts were temporarily raised until the end of this year with the hope of helping consumers get better (bigger) mortgages.  It actually helped very few, confused the banks and cost the borrowers more. In the long run, the banks did not really want to do these loans and wound up putting on too many restrictions resulting in not so many loans…..

 

In the dark days of Freddie and Fannie, Freddie decided the risk is too high on these loans and they are pulling out now.  I have not heard the same thing for FannieMae and am not sure (yet) if this is even true.

 

Proven fact is that there really is no quick fix plan for us. Dale Robyn Siegel