By KIMBERLEY HAAS
Rocket Pro TPO has increased the limits for conforming loans, and in doing so, leaders there say getting ahead of the curve will benefit mortgage professionals and their clients.
Officials at the Federal Housing Finance Agency won’t be announcing the 2024 conforming loan limits until November, but starting today, broker partners of Rocket Pro TPO will be able to take advantage of them, according to Executive Vice President Mike Fawaz.
Fawaz spoke with The Mortgage Note on Friday.
“We’re very, very excited about this one. As you know, last year Rocket Mortgage was the very first lender that was able to implement the 2023 conforming loan limits, and this year it’s no different,” Fawaz said. “I think Monday will be a very good day for our broker partners for sure, and their clients.”
The new limits for single-family homes are $750,000 in the lower 48 states and $1.125 million for Alaska and Hawaii.
Fawaz said brokers will be able to offer better pricing while giving more homebuyers access to conforming loans, which are less restrictive than jumbo loans.
“I’m excited to go to the broker community on Monday, and in my mind, the way I’m thinking about it is that every single client you spoke to on Sunday at every single open house, if you were thinking jumbo or you were thinking high balance, you’re going to be able to call them and say, ‘Hey listen, I have a chance for a conforming loan and you’re going to be able to get better pricing most likely and this is because of our partnership with Rocket,'” Fawaz said.
Fawaz said the feedback for this opportunity was good last year and he expects it to be even better this year because the market has been tougher.
“For us, it’s really about providing. We understand that even if it’s a month or month and a half before the official announcement, we understand that if we can go out to the broker community and offer them this, this is going to help American families, and broker partners that haven’t had an easy year, to be able to win more business,” Fawaz said.
Boosting the limits for conforming loans in advance of the FHFA’s official announcement has been embraced as a way to promote business by mortgage lenders. Last year, Rocket, United Wholesale Mortgage, PennyMac, and Finance of America announced new loan limits in September.
Rocket is able to update its loan limits early because loans are sold to Fannie Mae and Freddie Mac up to several months after the loan is closed. Lenders will hold loans on their books until they can be sold to a mortgage investor in the routine course of doing business, according to an announcement for customers released on Monday.
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