"The current difference between the rates on 30-year fixed-rate jumbo loans (loans ineligible for sale to Freddie Mac and Fannie Mae) and conforming and super conforming loans remains at record levels. Freddie Mac is continuing to fulfill its mission to provide a reliable source of mortgage funding, helping to keep rates low."
The entire home loan market is absurd and full of arbitrary loan and interest rate limits. One of the most absurd examples is the difference between conforming loan amounts for most states ($417,000) and that for Hawaiii, Alaska, Guam, and the Virgin Islands (625,500). Who comes up with this crap!
So, if I live in Guam I can get a conforming loan of 625,500 at the lowest rates available but, if I live in California, Texas, Florida or nearly every other state, and need a loan of 450,000 I can't get the loan rate I need to survive? Sorry, I can't move my house to Alaska, and like Guam's higher conforming rate is more important than California, New York, Washington or Virginia's housing market?
This is some of the most arbitrary and economy crushing nonsense I've ever come across. We need to fix this idiocy immediately by eliminating the whole jumbo loan-higher rate nonsense. Conforming to what... government arbitrary stupidity with our money and economy?
Short of completely nationalizing home lending (as proposed by this writer (see click here)
Congress must move to eliminate Fannie Mae and Freedie's conforming loan nonsense and open the loan market to improve the economy. Exactly this step should have been one of the first steps in any stimulus program.
Congress, can we get some relief and smarts here? Like now!
Kent Welton,
PublicCentralBank.com
