Bulletin 2020-118 Conforming Loan Limits Update

Conforming Loan Limits Update

NewRez LLC "NewRez" Approved Correspondent Clients: please note that effective Monday, November 30, 2020, NewRez will begin supporting the increased conforming loan limits that Fannie Mae and Freddie Mac announced on Tuesday November 24, 2020. The 2021 maximum standard loan limits have increased to $548,250 for loans delivered on or after January 1, 2021. High-Cost areas have been updated to a maximum ceiling of $822,375*. The 2021 limits can be accessed at the following link: 2021 Conforming Loan Limits.

 

The DU update will take place on December 12, 2020 and LPA will be updated by December 13, 2020. NewRez will accept DU Approve/Ineligible and LPA Accept/Ineligible decisions, when the “ineligible” result is solely due to the loan amount being in excess of the 2020 limits, but is within the 2021 limits.

 

Please note that loan limit changes are for conforming loans only. Changes to FHA, VA and USDA loan limits and New Rez’s acceptance of loans at new limits for FHA, VA and USDA will be announced at a later date.

 

* 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.