Rocket Pro TPO raises the consensual loan limit to $802,650 prior to the FHFA decision.

Rocket Pro TPOthe wholesale arm of Rocket Mortgageincreased its agency compliance loan limits to $802,650 in 48 states, prior to the announcement of Federal Housing Finance Agency (FHFA) which is expected to be in November.

In Alaska and Hawaii, the mortgage loan was originated by Rocket Pro TPO and purchased by Fannie Mae again Freddie Mac increased to $1,204,000.

Rocket Pro TPO will honor these expected loan limits for loan applications from Fannie Mae or Freddie Mac conventional products starting Friday, the company said.

“We’re doing it faster than we usually do, which is huge,” said Mike Fawaz, senior vice president at Rocket Pro TPO, in an interview with HousingWire.

“With Rocket’s money and our position, we can do that before anyone else. We are able to hold these loans on the books for a long period of time. If I think about its importance, if you have a client today who wants to buy and falls between these two limits, instead of getting a loan, now you can make a regular loan.”

The increase in the flexible loan limit will allow Rocket’s dealer partners to help a large group of people who have not moved forward due to existing loan limits, or those who are waiting for a new loan limit announcement from the FHFA, added Fawaz.

Rocket’s decision shows that the mortgage lender is confident that the maximum loan limit set by the federal government will increase by at least 4.71% by 2025. FHFA’s initial base conforming loan limit for Fannie and Freddie subsidized mortgages in 2024 was $766,550, up 5.5% in 2023.

Adjustments to loan limits often follow changes in home prices. National home prices rose 4.3% year-on-year through July 2024, according to the report CoreLogic data.

Since Rocket Pro TPO is the first to increase the loan agreement limits on the agency’s eligible loans, other lenders are expected to follow suit.

For 2022, the Rocket Pro TPO announced in September that it would increase its compliance loan limits by 3.3% to $715,000. rocket competition, United Wholesale Mortgagehe did the same the next day.

The Housing and Economic Recovery Act (HERA) established a formula in 2008, which mandated that the corresponding loan limit could be increased only after housing prices had returned to pre-recession levels. That situation was finally met in 2016 when the FHFA raised the consensus limits for the first time in a decade.

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