Sanwa Bank California Reminds Consumers That Conforming Mortgage Loan Limits Will Increase to $240,000 On Jan. 1.LOS ANGELES--(BUSINESS WIRE)--Dec. 21, 1998--Reflecting the rising prices of homes throughout the nation, conforming mortgage loan limits will be increased to $240,000 effective Jan. 1, 1999, Sanwa Bank California real estate lending officials reminded consumers Monday. 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. are mortgages that, once approved and funded by banks, may then be purchased by either of the nation's two federally chartered mortgage corporations, the Federal National Mortgage Association (Fannie Mae Fannie Mae: see Federal National Mortgage Association. ) and the Federal Home Loan Mortgage Corp. (Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. ). The mortgages are then packaged by the two entities for resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. as securities on Wall Street. In contrast to so-called "jumbo" or nonconforming loans, consumers benefit when applying for conforming loans through a simplified process of qualifying and application, 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. Kathy Hermosillo, vice president in Sanwa's Residential Real Estate Department. "Conforming loans are also easier for the bank to approve since the loans qualify for sale to either Fannie Mae or Freddie Mac, neither of which purchase jumbo loans Jumbo Loan Any residential or commercial mortgage with a loan amount exceeding the guidelines of Fannie Mae and Freddie Mac. Notes: Rates tend to be slightly higher on jumbo loans because lenders generally have a higher risk. ," Hermosillo added. Sanwa Bank California, with $8.4 billion in assets, is the third-largest bank headquartered in the state and provides a full range of personal, business, international and trust services through a network of 107 branches statewide. It is the largest and most profitable subsidiary of $431 billion-in-assets Sanwa Bank Ltd., one of the 10 largest financial institutions in the world. NOTE TO EDITORS: Sanwa Bank news releases are available via fax by dialing NewsOnDemand toll free at 888/329-5714. |
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