A borrower applies for a loan on January 15th in a county where the conforming limit was just increased from $850,000 to $900,000 effective January 1st. They want to borrow $875,000. The lender delays processing and doesn't submit to underwriting until March. What is the loan's conforming status?
Correct Answer
B) Conforming under the new limit
The loan amount of $875,000 is within the new conforming limit of $900,000 that was effective January 1st. Processing delays don't affect the conforming status as long as the loan amount is within the current limits.
Why This Is the Correct Answer
The loan amount of $875,000 is within the new conforming limit of $900,000 that was effective January 1st. Processing delays don't affect the conforming status as long as the loan amount is within the current limits.
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