American Banker (05/07/08) P. 13; Terris, Harry; Berry, Kate
Through the end of 2008, Fannie Mae will snap up jumbo conforming mortgages at regular conforming-loan prices. Recent legislation boosted the ceiling for mortgage purchases by Fannie Mae and Freddie Mac to $729,750 from $417,000, with only 71 markets seeing higher limits. While House Financial Services Committee Chairman Barney Frank, D-Mass., said at a recent Mortgage Bankers Association conference that he would schedule hearings to determine why the government-sponsored enterprises (GSEs) have not purchased more jumbo loans since the higher limits were implemented, Office of Federal Housing Enterprise Oversight deputy director and COO Ed DeMarco said purchases have been slow because the GSEs are not familiar with the jumbo market. Meanwhile, UBS AG's Laurie Goodman noted, "Agency-conforming jumbo is going to be a small market because relatively few mortgages qualify."
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