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Dear Valued Partner,

Unless subsequent regulation is passed to further extend the temporary loan limits, the permanent loan limits set forth by the Housing and Economic Recovery Act (HERA) will take effect on October 1, 2011. Sun West will use the trigger dates set by the GSEs, VA and HUD to determine the respective maximum loans limits for each loan product.

Product Trigger Date Loan Limits Loan Limit Type
Agency (Conforming) loans Note Date On or before 9/30/2011 CLICK HERE and refer to "Maximum Loan Limits for Loans Originated between 10/1/2010 and 9/30/2011" Temporary Loan Limits defined under ARRA1
On or after 10/1/2011 CLICK HERE and refer to "Maximum Loan Limits that Apply to Loans Acquired in Calendar Year 2011 and Originated after 9/30/2011 or Prior to 7/1/2007" Permanent Loan Limits defined under HERA2
FHA Loans Final Credit Approval Date* On or before 9/30/2011 CLICK HERE and select "Jan 1, 2011 - Sept 30, 2011" option in Limit Year field Temporary Loan Limits defined under ARRA1
On or after 10/1/2011 CLICK HERE and select "Oct 1, 2011 - Dec 31, 2011" option in Limit Year field Permanent Loan Limits defined under HERA2
VA Loans Note Date On or before 12/31/2011 CLICK HERE Temporary Loan Limits defined under ARRA1
On or after 1/1/2012 To be anounced Permanent Loan Limits defined under HERA2

Note:
1: ARRA => American Recovery and Reinvestment Act of 2009
2: HERA => Housing and Economic Recovery Act of 2008

For Correspondent Lender Partners:

The above table illustrates the trigger date that defines the loan limits for various loan programs such as Fannie Mae, Ginnie Mae, FHA and VA.

*FHA loans – The Final Credit Approval Date:

All FHA loans originated with Temporary loan limits established under ARRA and delivered to Sun West for purchase, must have a credit approval on or before September 30, 2011 and comply with the loan specific requirements specified in HUD ML 11-29. The credit approval must meet the following criteria:

  1. A Direct Endorsement (DE) underwriter should have reviewed the loan and the property appraisal, and approved the them on or before September 30, 2011
  2. The HUD/VA Addendum to Uniform Residential Loan Application, Form HUD 92900-A, page 3, must be signed and dated by the underwriter on or before September 30, 2011.
  3. The Approval date in the Insurance Application screen in FHA Connection must match the approval date on the FHA/VA Addendum.
  4. The Appraisal date must be on or before September 30, 2011, and the appraisal must be effective at the time of loan closing.
  5. If the loan is a Test Case, HUD should have issued a firm commitment for insurance on or before September 30, 2011.
  6. The Borrower(s) and all terms of the loan must remain unchanged per the approval issued on or prior to September 30, 2011.
  7. The FHA case number should not have expired or been cancelled once the loan was approved by the Underwriter. FHA will not accept a Case Transfer or the assignment of a new case number after loan approval.

For Wholesale / TPO Partners:

The above table illustrates the trigger date that defines the loan limits for various loan programs such as Fannie Mae, Ginnie Mae, FHA and VA. Please be advised that if a loan fails to close by the trigger dates listed above, the loan approvals would require to be reviewed/revised which may result in:

  • Reduction of the loan amount
  • Increase in cash-to-close requirements and proof of assets from the Borrower
  • Credit Denial, if the loan does not conform to Agency / Investor guidelines

Sun West will make every attempt to ensure that current loans in the pipeline, which would be affected by the change in Loan Limits, close within the deadline dates.

References:

If you have any questions, please feel free to call on your Account Executive at (800) 453-7884.

Sun West Mortgage Company, Inc.
18303 Gridley Road
Cerritos, CA 90703
Phone: (800) 453-7884

Equal Housing OpportunityAll products are subject to credit and property approval. Program terms and conditions subject to change without prior notice. Not all products are available in all states or for all amounts. Other restrictions and limitations apply. The content in this flyer is for informational purposes only and not meant for legal, tax or professional accounting advice.

Sun West Mortgage Company, Inc. (NMLS ID 3277) is licensed by the Department of Corporations as a California Finance Lender (License #603 0119) and is licensed by the Department of Real Estate (License #00793885). Refer towww.swmc.com to see where SWMC is a licensed lender. In all states, the principal licensed office of Sun West Mortgage Company, Inc. is 18303, Gridley Road in Cerritos, CA 90703; Phone: (800) 453-7884