Lower Conforming Loan Limits Would Boost Non-Agency Market, Small Impact on Agency
September 12, 2013
A widely-expected reduction in conforming loan limits for 2014 would help the jumbo market continue to broaden its footprint in mortgage originations, but the impact would be largely confined to a handful of states, according to a new Inside Mortgage Finance analysis. Jumbo production originations of home loans that exceed varying conforming loan limits around the country has been the brightest spot in a mortgage outlook made increasingly gloomy by rising interest rates. Non-agency jumbo originations rose 9.3 percent from the first to the second quarter, while total originations of Fannie Mae, Freddie Mac and FHA loans fell 3.8 percent. Jumbo mortgages accounted...[Includes four data charts]