Statement by Brian Faith Managing Director, Communications on Jumbo Conforming Loan Pricing
April 17, 2008
Fannie Mae is providing price certainty for all our customers for jumbo-conforming mortgages. We believe price certainty is important to help facilitate an efficient market for jumbo-conforming mortgages. Since April 1, we have been making jumbo-conforming whole loan pricing available for lenders large and small in order to provide as much liquidity as possible to this sector of the market. Currently, the yield Fannie Mae requires for fixed-rate, jumbo-conforming loans is just 39 basis points higher than the yield for comparable fixed-rate conforming loans. For jumbo-conforming whole loans, lenders can lock in pricing for up to 90 days, and commitments are available for both fixed-rate and adjustable-rate mortgages. We have 90-day forward MBS commitments available as well and already have several in place.
