Ginnie Mae Revises Definition of High Balance Loans

In an All Participant Memorandum (APM 17-07), Ginnie Mae announced that it was revising its definition of High Balance Loans in response to FHFA’s announcement of increased conforming loan limits.

A High Balance Loan generally is currently defined as a single-family forward mortgage loan with an original principal balance (minus the amount of any upfront mortgage insurance premium) that exceeds the conforming loan limits as determined by FHFA and in effect at the time the loan is made. Pursuant to APM 17-07, for any issuance on or after January 1, 2018, a High Balance Loan will be defined in the same general manner, but with increased maximum loan amount limits.

Ginnie Mae’s issuance can be found at: https://www.ginniemae.gov/issuers/program_guidelines/Pages/mbsguideapmslibdisppage.aspx?ParamID=83.