Announcement 2021- 077 - Conforming Loan Limits Update

Effective with new loans locked on or after October 22, 2021, Newrez will begin supporting increased conforming loan limits for Standard Fixed Rate conforming products except for the RefiNow and Refi Possible Programs. Standard ARMs, HomeReady and Home Possible products will be implemented at a later date. The new loan limits will be:

Requirements

• Loans must receive a DU Approve/Ineligible or LPA Accept/Ineligible; “Ineligible” solely due to the loan amount being in excess of the 2021 limits, but within the limits noted above.
• Newrez will require a full appraisal on loans locked as conforming with balances above the current loan limits and up to the expanded loan limits, regardless of the DU/LPA appraisal recommendation. Appraisal waivers are not acceptable.
• Properties in high-cost counties may see both the High Balance or Super Conforming and Expanded Loan Amount (ELL) products return as Eligible for their loan. Originators should select the product that offers the borrower the best price for their particular scenario.
• Pricing
  • Loans that fall into the expanded loan limits will be priced as a standard conforming loan with the following adjustments:
• Purchase and Rate and Term Refi = -0.20
• Cash-out Refi = -0.50

Eligible Products