Maximum limits on single-family loans that are securitized by Redwood Trust Inc. have been boosted by one million dollars.
An update has been made by the Mill Valley, California-based company and the Mortgage Partnership Finance Program.
A joint announcement
issued Monday indicated that the loan limit on mortgage loans for the MPF Direct product was raised.
The limit, which
currently stands at $1.5 million, will rise to $2.5 million during the third quarter.
Members of the Federal Home Loan Bank System will deliver the loans to Redwood.
The FHLBank of Chicago operates the MPF program for the FHLBank System, while six FHLBanks — including Atlanta; Boston; Chicago; Des Moines, Iowa; Pittsburgh; and San Francisco — have been approved by the Federal Housing Finance Agency to offer the MPF Direct product.
Redwood last increased its jumbo loan limit in June 2015 from $729,750.
Additionally, Redwood has made hybrid adjustable-rate mortgages eligible for delivery.
“The MPF Direct product allows members of a Federal Home Loan Bank that participate in the MPF Program to deliver eligible jumbo mortgage loans through the MPF Program’s operational platform to a subsidiary of Redwood Trust,” the announcement stated. “This arrangement adds private capital to the secondary mortgage market.”
