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Announcement # 2018-107: Conforming Loan Limits Update

Starting Monday December 3rd, New Penn Financial will begin supporting the increased conforming loan limits that Fannie Mae and Freddie Mac announced on Tuesday November 27th.

The 2019 maximum standard loan limits have increased to $484,350 for loans delivered on or after January 1, 2019. High-Cost areas have been updated to a maximum ceiling of $726,525*. The 2019 limits can be accessed at the following link: 2019 Conforming Loan Limits.

What you should know and actions you can take:

  • Our systems will be updated this weekend and will and able to accommodate the increased limits as of 12/3. We will publish any updates to impacted product profiles over the coming weeks.
  • New registrations and pipeline loans will be permitted to close at the increased limits if desired. Pipeline loans will need to be re-underwritten if previously approved. (See below regarding DU/LPA).
  • You may review existing Jumbo pipeline loans to see if there is a benefit to the borrower to switch to conforming. If switched, pricing will be current market pricing except for Dream Big which will be based on the original lock date.
  • DU/LPA will not be immediately updated, so you will receive messaging regarding ineligibility for loan size if using the new limits. Underwriting will be able to approve these loans provided the ineligible reason is only for loan amount and the loan amount is within the new limits.
    • LPA Update will take place on December 1, 2018
    • DU Update will take place on December 8, 2018

Please note that loan limit changes are for conforming loans only. Changes to FHA, VA and USDA loan limits are typically announced at a later date and have different requirements regarding registration and/or closing under any new limits announced. A separate announcement regarding changes to FHA, VA and USDA limits will follow once official updates are made.

* As a reminder, actual loan limits for certain high-cost areas, as determined by FHFA, may be lower than the maximum high-cost area limit. When originating High Balance or Super Conforming mortgages, you must check the loan limits for the specific county where the property is located.