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Quick Hit: JUMBO Higher Priced Mortgage Loans

michaelchristians • December 4, 2019

The Federal Housing Finance Agency recently announced an increase to the maximum conforming loan limits eligible for purchase by Fannie Mae and/or Freddie Mac. These are commonly referred to as jumbo loans.

Beginning January 1, 2020, the jumbo loan limit for the lower 48 states will be $510,400. Other limits apply to Alaska, Hawaii, Guam, the U.S. Virgin Islands and other high-cost areas.

Those of you originating higher priced mortgage loans (HPMLs) under §1026.35 of Regulation Z will need to pay close attention to this change. By definition, an HPML is a closed-end consumer credit transaction secured by the borrower’s principal dwelling with an APR that exceeds the APOR by:
• 1.5% or more for non-jumbo 1st lien loans
• 2.5% or more for jumbo 1st lien loans
• 3.5% or more for subordinate lien loans

Just a friendly reminder to update your policies, procedures and systems accordingly effective 1/1/2020.

The post Quick Hit: JUMBO Higher Priced Mortgage Loans appeared first on Michael Christians Consulting, LLC.

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