Rocket Mortgage Raises 2023 Conforming Loan Limits For Brokers In Gambit To Prop Up Origination Numbers
The wholesale arm of Rocket Mortgage raises 2023 loan limits for brokers. Rocket Mortgage raised loan limits to $715,000 effective on Tuesday. This is a sign that they are confident the maximum loan limit set by the federal government will rise by at least 10% in 2023. It is also a gambit to prop up origination numbers.
The increased loan limits for mortgage brokers apply to new registrations and locks effective September 6th. Rocket Mortgage requires a full appraisal.
Rocket’s gambit comes during one of the company’s most challenging periods in the company’s history.
Rocket Pro TPO Vice President Austin Niemiec told Housingwire:
Rocket Mortgage says the new conforming loan purchase limit will offer better pricing. It will also require a smaller down payment for purchases and easier documentation compared to a jumbo loan.
Time will tell if this helps their plummeting origination numbers and compete with UWM’s Game On pricing initiative. Rocket Pro TPO also plans to diversify its product portfolio by offering home equity loans in mid-September.
Will Raising Limits Burn Rocket Mortgage?
The conventional loan limit for 2022 is a baseline of $647,2000 for one-unit properties. However, it rises to $970,800 in high-cost areas. This is an indication that Fannie and Freddie limits on purchased loans could eclipse the $1 million mark in 2023.
Industry insiders expected that lenders would increase loan limits ahead of the FHFA‘s November announcement. However, Rocket’s move appears to be the earliest push yet. Lenders last year didn’t raise anticipated conventional loan limits until early October.
As the wholesale lending space faces increased competition with UWM’s Game On pricing initiative, Rocket Pro TPO also plans to diversify its product portfolio by offering home equity loans in mid-September.