Freddie Mac has agreed to make 90-day commitments to several large banks on the pricing of conforming jumbo loans, according to a report.
The government-sponsored home loan lender will offer the deal to Wells Fargo & Co., J.P. Morgan Chase & Co. and Citigroup Inc., Freddie officials said according to the Wall Street Journal.
The Conforming Jumbo loans in question fall in between $417,000 and $729,750.
As a result of the ongoing housing crisis, the U.S. congress raised the limit on loans that can be sold to Freddie Mac or Fannie Mae to $729,750 from their limit of $417,000. However those limits will end by the end of the year
Lenders have been wary of Fannie and Freddie for homes in that category since