I received word this morning that the rumor is that Bank of America has stopped accepting high balance conforming loan amounts over $625,000 on Tuesday, July 12. We are assuming that this is to ensure they are able to close all the loans over this amount no later then September 30, 2011 when the high balance conforming rate will drop. Again, this is only a rumor and I would highly suggest that if you have a client that is prequalified with Bank of America that this holds true. I am not surprised by their move and I believe we will begin to see other lenders following their lead.
As of right now, we are still in a position to accept high balance loan applications. I am guessing that most lenders will probably stop accepting them sometime in August. If you have any buyers and sellers with the loan amounts over $625,000, tell them now is the time to make their move! Next week may be too late.
Call me if you need any help in California.
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