Banks Putting the Squeeze on Jumbo Loan Borrowers

A discussion on the Forum got started yesterday on this piece from the Real Deal. "JPMorgan Chase and Wells Fargo have moved up by four weeks to December 1 the deadline for borrowers to close on jumbo conforming loans, thereby limiting lending options available to already pinched home buyers, in high-priced areas such as New York City," they write. "The move affects buyers of homes and apartments between about $1 million and $3 million seeking a loan in the jumbo category, which is between $417,000 and $729,750." After December 31, the loan limit will drop to $625,000, but JP Morgan and Chase, who covered 71 such mortgages in the city last week, made the cutoff date December 1. The bottom line, as reader Sunny Hong wrote: "Those that are looking for jumbo conforming loans above 417k and up to $729,750 will not be able to obtain a mortgage from Chase or Wells after December 1... This affects people that have loan amounts between 417k and $729,750 from getting a pretty competitive 30 year fixed rate. They would have to get a regular jumbo loan. Other banks may follow suit as well." Anybody out there affected by this?
Chase, Wells Set Early Date for Jumbo Loan Closings [Real Deal]
Photo by Rev Dan Catt.

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I will be affected once NYC house prices finally fall. Then I can buy a place 20% bigger than I was planning too, or save myself 20% costs.

Posted by: dittoburg at October 10, 2008 9:05 AM

That Brooklyn Heights home I want is starting to look like reality. The Market should bottom today.

Posted by: HOBOKENROCKS at October 10, 2008 9:31 AM

well it really only affects mortgage brokers,
retail outfits of wells doesnt haqve that restriction right now, so if you want a mortgage go to wells retail and they can close it up to dec 31st.

and i can help you do that. just give me a holler

Posted by: Blev9701 at October 10, 2008 9:32 AM

this affects anyone who wants to sell their place for more than about $800,000.

Posted by: plgdude at October 10, 2008 10:03 AM

I affected... oh wait. No I'm not.

Posted by: tybur6 at October 10, 2008 10:04 AM

HOBOKEN: I agree with market bottom today. Funny, I just walked past the NYSE and there wasn't much excitement beyond a couple of news crews. I briefly thought the circuit breakers had tripped but apparently I'm wrong.

Posted by: lechacal at October 10, 2008 10:12 AM

Your handle and target nabe don't seem to go together, HOBOKENROCKS. You seem like a spunky guy. Why wealthy but boring Brooklyn Heights? You seem more like a Fort Greene kinda guy.

Posted by: DOW8000SP800 at October 10, 2008 10:20 AM

Bankers are such sheep.....

The issue isnt how much you lend, its who you lend to and what you lend against......

Stupid on the way up and stupid on the way down.....its always the same.

Posted by: fsrg at October 10, 2008 10:24 AM

We have a mid-December closing scheduled with loan in this category. Wells Fargo is the bank, but haven't heard yet directly from them about this change yet.

Posted by: ppwgall at October 10, 2008 11:33 AM

I have a feeling the NYSE floor traders aren't spending a whole lot of time with smoke breaks on the sidewalk in their funny jackets these days... must be the longest 6-1/2 hrs every day.

Posted by: tybur6 at October 10, 2008 12:10 PM

Loans ABOVE 417K... Not 417k. I just got a 417K "super" conforming mortgage. Whatever super means.

Posted by: Architerrorist at October 10, 2008 12:36 PM

This is just for wholesale channels. If you are going through a mortgage broker they will be cut off. Also Citimortgage canceled most of their relationships with brokers this week. I think they kept 10% of their brokers.

Mortgage Bankers are not subjected to these rules and can continue to lend to 729k. Also I have been dealing more with smaller local banks that have excellant jumbo rates up to 1.5 million and above.

Also the "tipster" reader Sunny Hong works for Countrywide to put things in perspective.

Posted by: Adam Dahill at October 10, 2008 12:55 PM

These dates are true, but for brokers only seems like the missed that part in the article. I went to an open hosue at a new building last weekend and Brian Scott Cohen from Wells was there ansering a lot of people's questions it was very good

Posted by: jackie loves at October 10, 2008 7:06 PM

These dates are true, but for brokers only seems like the missed that part in the article. I went to an open house at a new building last weekend and Brian Scott Cohen from Wells Fargo was there ansering a lot of people's questions it was very good

Posted by: jackie loves at October 10, 2008 7:06 PM

I work for Wells Fargo, in their Renovation department, I know there seems to be allot of questions about what can be done, or cannot be done in today's market's. If you do have questions feel free to contact me at steven.wall@wellsfargo.com

Posted by: swall at October 17, 2008 1:55 PM

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October 10, 2008

Banks Putting the Squeeze on Jumbo Loan Borrowers

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