{"id":14833,"date":"2011-07-25T07:08:48","date_gmt":"2011-07-25T14:08:48","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=14833"},"modified":"2011-07-25T07:23:58","modified_gmt":"2011-07-25T14:23:58","slug":"the-sky-is-falling-and-so-are-loan-limits","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14833\/the-sky-is-falling-and-so-are-loan-limits\/","title":{"rendered":"The Sky is Falling… and So Are Loan Limits"},"content":{"rendered":"

There are more changes coming to the residential lending world (all those surprised by that, please stand on your head and whistle).\u00a0 The Fed is maintaining the conforming loan limit of $417,000, but is lowering\u00a0the non-conforming, conforming loan limits.\u00a0 The\u00a0what now?\u00a0 A little background might help: in 2008 Fannie Mae\u2019s charter was expanded to allow\u00a0loan amounts in high cost areas (such as San Diego\u2026 yeah us!) to exceed the nationwide conforming loan limit of $417,000.\u00a0 The most recent loan limit in\u00a0San Diego County has\u00a0been\u00a0$697,500, thus making it\u00a0exceedingly\u00a0difficult for those of us who toil away in the real estate salt mines of America’s Finest City\u00a0to keep\u00a0beautiful San Diegans housed in the luxury\u00a0to which they have\u00a0become accustomed…<\/p>\n

But as of\u00a0October 1, the limit is dropping; in San Diego County it will be $546,250 and some wonder if this isn\u2019t just a stepping stone on the way down to the original $417,000!\u00a0<\/p>\n

As you might imagine, there is a long list of people who do not\u00a0like this decision.\u00a0 The National Association of Realtors has sent out an Emergency “Call for\u00a0Action” message in response,\u00a0suggesting “… a housing recovery depends on keeping mortgages affordable<\/em>” and warning this decrease in loan limits will \u201cmake creditworthy borrowers unable to access affordable financing<\/em>\u201d (emphasis\u00a0mine).\u00a0 This raises an interesting question:<\/p>\n

Should the government be<\/em><\/strong> providing affordable financing in high cost areas?<\/p><\/blockquote>\n

Hold on, let me ask that again, with a little more accuracy:<\/p>\n

Should you and I be <\/strong>subsidizing mortgages for people buying $800,000 homes?<\/p><\/blockquote>\n

Wait… don’t answer that.\u00a0 We don’t want to be\u00a0insensitive to the needs of my fellow San Diegans and we certainly don’t want to interfere with the ongoing success of the\u00a0“housing recovery.”\u00a0\u00a0 Let’s move on to the good news:<\/p>\n

With the Fed in charge of “high cost” loans and a market unsure what the Fed might\u00a0 do next… well, they\u00a0were kind of\u00a0the elephant in the room; there was no\u00a0space for anyone else,\u00a0which meant that until very recently,\u00a0there were no true Jumbo loans to be found.\u00a0 (Unlike jumbo shrimp, a jumbo loan actually means what it sets out to mean: a loan amount larger than Fannie Mae\u2019s conforming – or in this case non-conforming, Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The most recent loan limit in San Diego County has been $697,500, thus making it exceedingly difficult for those of us who toil away in the real estate salt mines of America’s Finest City to keep beautiful San Diegans housed in the luxury to which they have become accustomed…<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[251,26],"tags":[514,234],"class_list":{"0":"post-14833","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-big-mother","7":"category-lending","8":"tag-jumbo-loans","9":"tag-loan-limits","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2536,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2536\/conforming-loan-limit-of-650000-fha-loan-limit-of-729000\/","url_meta":{"origin":14833,"position":0},"title":"Conforming Loan Limit of $650,000, FHA Loan Limit of $729,000","author":"Brian Brady","date":"January 24, 2008","format":false,"excerpt":"A conforming loan limit of $650,000 and an FHA loan limit of $729,000 are being telegraphed as part of the Economic Stimulus Package of 2008. Inman News reports that Congress backed a temporary loan limit increase to $625,000: The government-sponsored enterprises, or GSEs, may soon be allowed to back loans\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4606,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4606\/federal-bailouts-world-crisis-what-about-little-ol-me\/","url_meta":{"origin":14833,"position":1},"title":"Federal Bailouts, World Crisis… What About Little Ol’ Me?","author":"Sean Purcell","date":"September 23, 2008","format":false,"excerpt":"Lots of talking heads.\u00a0 Lots of outrage.\u00a0 Even a little fear.\u00a0 Keeping up with economic developments lately is taxing and I mean taxing in its most negative \"IRS and April 15th\" connotation.\u00a0 Last night Brian Brady and I were interviewing Matt Padilla for Bloodhound Radio.\u00a0 It was a great discussion\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2579,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2579\/higher-loan-limits-ok-ed-by-senate\/","url_meta":{"origin":14833,"position":2},"title":"Higher Loan Limits OK-ed by Senate","author":"Brian Brady","date":"February 8, 2008","format":false,"excerpt":"We talked about the foregone conclusion of higher loan limits for conforming and HUD loans two weeks ago: The word inside the Beltway is that the deal has been fast-tracked for approval (by The Senate and President) under the following terms: 1- GSE (conforming) loan limits will be temporarily increased\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4418,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4418\/fannie-and-freddie-fall-to-foreclosure-but-still-lenders-lend\/","url_meta":{"origin":14833,"position":3},"title":"Fannie and Freddie fall to foreclosure, but, still, lenders lend","author":"Greg Swann","date":"September 14, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Fannie and Freddie fall to foreclosure, but, still, lenders lend I write this column at the beginning of the week, and it appears at the end of the week. My topics are usually timeless, but, if I\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4812,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4812\/other-types-of-credit-may-be-feeling-the-crunch-but-home-mortgages-are-still-readily-available\/","url_meta":{"origin":14833,"position":4},"title":"Other types of credit may be feeling the crunch, but home mortgages are still readily available","author":"Greg Swann","date":"October 4, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Other types of credit may be feeling the crunch, but home mortgages are still readily available Bad news about the economy is coming in from all directions, so you may be in the mood for some good\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1784,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1784\/mortgage-meltdown-the-end-of-the-world-has-been-delayed-again\/","url_meta":{"origin":14833,"position":5},"title":"Mortgage meltdown? 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In fact, the world probably cannot\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/14833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=14833"}],"version-history":[{"count":7,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/14833\/revisions"}],"predecessor-version":[{"id":14844,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/14833\/revisions\/14844"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=14833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=14833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=14833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}