Announcement 2021- 090 - 2022 Conforming Loan Limit Increases

  • The Federal Housing Finance Agency (FHFA) has announced the 2022 conforming and high-cost loan limits.

     

    2022 Conforming Loan Limits

    Units

    Base Loan Limits (excludes Alaska and Hawaii)

    Base Loan Limits in
    Alaska and Hawaii

    High-Cost Loan Limits
    (excludes Alaska and Hawaii)

    1

    $647,200

    $970,800

    $970,800

    2

    $828,700

    $1,243,050

    $1,243,050

    3

    $1,001,650

    $1,502,475

    $1,502,475

    4

    $1,244,850

    $1,867,275

    $1,867,275

     

    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. There are no high-cost areas in Alaska and Hawaii.

     

    What You Should Know and Actions to Take

    • Effective immediately, no new registrations or locks are allowed in the Temporary Expanded Loan Limits (ELL) products. Any loans currently locked in the Temporary ELL products should remain and close in the Temporary ELL product.
    • All new registrations on or after Dec. 3, 2021 and all pipeline loans not locked, should be in a standard conforming product (not an ELL product) and will be allowed to close at the increased loan limits. Pipeline loans will need to be re-underwritten if previously approved. See below regarding DU/LPA.
    • You may review existing Jumbo pipeline loans to see if there is a benefit to the borrower to switch to a Conforming product. If switched, pricing will be current market pricing.
    • These actions are for Fannie Mae and Freddie Mac loans only. Changes to FHA, VA, and USDA will be announced in a separate communication.

     

    Fannie Mae’s Desktop Underwriter

    The 2022 loan limits will be applied to Desktop Underwriter (DU) loan submitted (or resubmitted) on or after the weekend of Dec. 4, 2021. Loans that are underwritten through DU prior to Dec. 4 that receive an Ineligible recommendation due only to exceeding the 2021 loan limit are allowed. The loan does not have to be resubmitted to DU if the loan amount complies with the applicable 2022 conforming loan limit. However, you may want to resubmit after the new loan limits are implemented in DU to potentially obtain more streamlined collateral valuation options.

     

    Freddie Mac Loan Product Advisor

    The 2022 loan limits will be applied to Loan Product Advisor (LPA) loan submitted (or resubmitted) on or after Dec. 5, 2021. Loans that are underwritten through LPA prior to Dec. 5 that receive an Ineligible recommendation due only to exceeding the 2021 loan limit are allowed. The loan does not have to be resubmitted to LPA if the loan amount complies with the applicable 2022 conforming loan limit. However, you may want to resubmit after the new loan limits are implemented in LPA to potentially obtain more streamlined collateral valuation options.

     

    Resources

    FHFA

    Fannie Mae Lender Letter LL-2021-16

    Freddie Mac Bulletin 2021-36