Indymac to Deliver Conforming Jumbo Loans to Fannie Mae

April 24, 2008 No Comments »

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Indymac Bancorp announced late last night on its company blog that it struck a deal last Friday to deliver conforming jumbo loans to mortgage financier Fannie Mae.

Senior Vice President Secondary Marketing Aaron Wade said the company was excited about the agreement, claiming it would allow the mortgage lender to offer better rates for those in need of a jumbo loan (what is the new jumbo loan limit?).

Wade noted that mortgage rates on the new jumbo loans were high as a result of poor investor demand, but should drop by roughly an eighth to a quarter-point thanks to the pact with Fannie.

A week ago, brother Freddie Mac announced a similar pact with Wells Fargo, Citi, Chase, and Washington Mutual to buy between $10 and $15 billion of the new, enhanced product.

Indymac said it was the first lender to build the new loan limits into its loan origination systems and begin offering pricing to its customers, though it’s unclear how many sales have resulted thus far.

The new conforming jumbo loan program has been widely criticized because interest rates remained high, but with more deals like this in the works, ideally pricing will improve and the program will have a meaningful result.

(photo: madaboutshanghai)

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