Banks, looking to squeeze as much as they can out of the real estate boom, are upping loan limits for the typical consumer mortgage ahead of their traditional schedule.
The move is taking place in so-called conforming loans, where banks take their cue on lending terms from Fannie Mae, the federally sponsored mortgage giant. But banks have decided not to wait for Fannie Mae this year.
“A lot of lenders are sending out letters stating that they are going to start accepting loans at higher loan limits well ahead of the Fannie Mae announcement,” said Bob Moulton, President of Americana Mortgage in Manhasset, New York. It’s a move he says he hasn’t seen in his 25 years of business
READ MORE AT CNNMoney.