Mortgage Blog

Why we can not do certain loans?
It will very interesting for two loans.
First last friday, I accepted one applictaion
for 700k loan with 15 yr fixed; and today,
I did not accept two applications for 440k loans
in Sacramento, one for purchase, one for refinance.

This is all related to the temporary loan limits.
I accept the loan last Friday, since I thought
I had around 4 weeks, and I could beat the market
to get the loan funded before September 30th.

For the two Sacramento laons, the loan limit will be
back to 417k after Oct 1st. If I could not complete
the two loans before Sep 30th, then both loans
will become Jumbo after that.

It will be a very interesting question for the lenders,
what they are going to price the loans if they were
not closed by the deadline. I know one thing is for sure,
they have to be priced at Jumbo anyway. But will they
take lower case scenario compared to today's Jumbo.

No one knows, since we don't take those applications anyway.

I am a risk taker, taht's why I took one application last
Friday. That will be my last application for the temporary
limit. Sanjay, that's your loan, good luck for both of us.