UGENT Update

Current Temp. Conforming Loans Must close by 12/31/08 or lose rate lock and approval:

The Temporary High Balance Conforming Loans (those loans that are between $417,000-$729,750), must close escrow by December 31,2008 with no exceptions.

 I am happy to report that Wells Fargo will allow these loans to close all the way up to the official expiration date set by Fannie Mae, but keep in mind that many lenders are setting earlier expiration dates (some as early as 12/15 or sooner).

 The following cutoff dates should be noted for locking in loans under the High Balance Conforming loan limits with Wells Fargo :

 In order to do a 60day rate lock, the loan must be locked in by 10/31/08 and close by 12/31/08.

In order to do a 30 day rate lock, the loan must be locked in by 12/1/08 and close by 12/31/08.

 Please keep these dates in mind when writing contracts over the next 15-45 days.

 As we get closer to December, it will be important for your clients to make sure their lender of choice is able to perform and guarantee funding these loans through the end of this year.

It is my understanding that there will be no exceptions for extending beyond December 31st, and loans that go beyond this date (no matter the reason), will be subject to new underwriting guidelines of the new program coming out January 1st, and the loan will be limited to $625,500.

 Most likely these loans which do not close on time will have to be re-underwritten, may be out of contract on the purchase transaction, rate locks will not be valid & borrowers may be subject to higher rates and different terms.