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by CareyBot

Changes in the rules for selling jumbo mortgages to secondary market investors could mean lower interest rates for home buyers seeking loans that fall within the new $625,550 limit for purchase or guarantee by Fannie Mae and Freddie Mac in high-cost housing markets that takes effect Jan. 1. The Securities Industry and Financial Markets Association says it will allow Fannie, Freddie and Ginnie Mae to mix a limited number of the "jumbo conforming" loans -- no more than 10 percent -- in pools of conforming loans sold to secondary market investors for "To-Be-Announced" delivery. The TBA market is considered the most important secondary market for mortgages because bonds are traded even before the specific loans that back them are actually identified. "We ex...