New conforming loan limit could affect $6 billion worth of new mortgages, TRW REDI says.ANAHEIM, Calif.--(BUSINESS WIRE)--Dec. 5, 1995--Federal Home Loan Mortgage Corporation's (Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. ) recent announcement to raise the upper limit on conforming loans Conforming loans Mortgage loans that meet the qualifications of Freddie Mac or Fannie Mae, which are bought from lenders and issued as pass-through securities. to $207,000, can affect as much as $6 billion worth of new mortgages, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. statistics released by TRW TRW The Real World (TV reality show) TRW The Right Way TRW Tactical Reconnaissance Wing TRW The Retriever Weekly (University of Maryland, Baltimore, MD) TRW Thompson Ramo Wooldridge Inc REDI Property Data, a nationwide real estate information company. TRW REDI's figures are based on recorded mortgage deeds Noun 1. mortgage deed - deed embodying a mortgage deed, deed of conveyance, title - a legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to possess it; "he signed the deed"; "he kept the title to his car in in the major metropolitan areas of 25 states, covering an estimated 60 percent of mortgage lending activity in the country. The company's analysis of mortgage data in those states shows that an estimated $3.8 billion new mortgages, which fall between the old conforming limit ($203,150) and the new limit ($207,000), are originated annually. This figure projects to approximately $6 billion nationally. In California, the new market potential for Freddie Mac amounts to more than $1.6 billion. Freddie Mac and Fannie Mae Fannie Mae: see Federal National Mortgage Association. , its main competitor in the secondary mortgage market, purchase conforming loans from lenders. Conforming loans carry lower rates by as much as half a percent compared to "jumbo" loans, partly because they are bought by Freddie Mac and Fannie Mae. TRW REDI estimates that about 30,000 homebuyers could benefit from lower rates and as a result of Freddie Mac's new conforming loan Conforming Loan A conventional mortgage under $203,150 that conforms to the loan amounts and mortgage guidelines used by Fannie Mae and/or Freddie Mac. Notes: Conventional mortgages or conforming loans are classified as non-conforming or jumbo loans when the amount of the limit. -0- Mortgage Market Potential Created By Freddie Mac's New Conforming Limit
STATE $ Million
ARIZONA 124
CALIFORNIA 1,674
COLORADO 146
CONNECTICUT 65
DC 13
DELAWARE 9
FLORIDA 155
GEORGIA 68
ILLINOIS 225
KENTUCKY 2
MASSACHUSETTS 192
MARYLAND 131
MICHIGAN 37
MINNESOTA 7
NEW JERSEY 147
NEW MEXICO 6
NEVADA 47
NEW YORK 100
OHIO 67
OREGON 64
PENNSYLVANIA 111
RHODE ISLAND 11
TEXAS 180
VIRGINIA 122
WASHINGTON 150
TOTAL 3,854
NOTES: Major metropolitan areas covered in each state. Estimates are based on annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. figures through the third quarter of 1995, except in Michigan and Pennsylvania. CONTACT: TRW REDI Property Nima Nattagh, 714/701-2263 |
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