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He hinted the cap might actually go higher: “These could actually come out a little bit higher than what we’re rolling out today,” he said on Tuesday. “We’ll find out in November, but we’re not waiting. We have the tech built, we have our processes that have been updated and, like I said, we believe this will be a huge competitive advantage to our brokers.”
Read more: What could conforming loan limits mean to your mortgage?
Niemiec ticked off the advantages the change yields for consumers: “We’re going to see our loan limits increase today, our conventional loan limits by over 10% to $715,000,” he said. “That means more folks will be able to get a new conventional loan – better rates, better pricing, less money down on purchases, which is a big deal, more cash-out available on a refi and typically an easier process in documentation compared to a jumbo loan. It’s a better overall loan for the borrower, better experience in getting the loan closed and, on purchase, it makes their offer a heck of a lot more attractive to sellers.”
He pointed out the advantage the change gives to the company’s brokers as well: “By us being the first to market this, it gives our broker partners a huge competitive advantage over other lenders and their brokers. This is why, today, we’re accepting new apps, new locks on it. It’s important. With the market shifting as quick as it has, speed of the game never has been more important. We have the broker community’s back on this one.”
In conveying the news, Niemiec reiterated the company’s unveiling ahead of the GSEs’ own loan limit updates. “They’re going to release in November,” he said. “We’re going before the GSEs, so this is a big deal. We’re getting way out, several months ahead of the GSEs announcing. It’s a big move for us, and a big move for our partners.”
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