WHEN: TODAY, WEDNESDAY, AUGUST 17TH
WHERE: CNBC'S "STREET SIGNS"
Following is the unofficial transcript of breaking news from CNBC's Diana Olick. All references must be sourced to CNBC.
DIANA OLICK: HIGHER CONFORMING LOAN LIMITS SET TO EXPIRE OCTOBER 1ST FOR FANNIE, FREDDIE AND THE FHA HAVE EFFECTIVELY ALREADY EXPIRED. WELLS FARGO IS CONFIRMING TO CNBC THAT AUGUST 15TH, THAT WAS MONDAY, WAS THE DEADLINE FOR APPLICATIONS AND RATE LOCKS FOR FHA AND CONVENTIONAL CONFORMING LOANS WITH BALANCES ABOVE THE LIMITS THEY EXPECT TO BE IN PLACE AFTER SEPTEMBER 30TH. REMEMBER THE OLD IS $729K WILL DROP TO $625,500 IN THE HIGHEST PRICED MARKETS. CURRENTLY WELLS HAS A 30-YEAR FIXED AT 4.25% JUMBO AT 4.625%, THAT IS GOING BACK DOWN. EVEN THOUGH THE RULE GOES INTO EFFECT OCTOBER 1ST, ALL LOANS HAVE TO BE FUNDED, SOLD AND SHIPPED TO THE GSEs BY THEN. REFI VOLUME HAS BEEN SO HIGH LATELY, THAT CAN TAKE UP TO 45 DAYS, SO THE LENDERS ARE CUTTING OFF NOW IN TIME TO GET THOSE LOANS INTO THE PROCESS. YOU REMEMBER THEY WERE RAISED BY CONGRESS FROM 417,000 IN 2008 TO HELP BRING MUCH NEEDED LIQUIDITY TO THE MORTGAGE MARKET AFTER THE CRASH. THERE HAS BEEN HEAVY LOBBYING TO EXTEND THE LIMITS, SO FAR NO AVAIL.
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