by Calculated Risk on 12/30/2007 12:42:00 PM

Back in November, Tanta discussed the details of the new GSE loan pricing: GSEs Tighten Up Loan Pricing. The new rules are for loans delivered on or after March 1, 2008, however, as Tanta noted:

... these March deadlines are for loans delivered to the GSEs on that date, not loans made on that date. Therefore, these pricing adjustments will be made to lender rate sheets signficantly before March.

These changes have just started to impact borrowers. From the Boston Globe: Preapproved and ready to move? Not so fast

Justin Moore had done his research when he set out to buy a condo. The 25-year-old said it even seemed easy when he got preapproved for a loan, found the perfect condo in Beacon Hill this fall, and readied for his December move.

But just one week before his scheduled closing, the mortgage company that for weeks had assured him he was all set told him there were problems.

This is just the beginning of those pricing adjustments:

"Most of our customers have been unscathed at this point," said Rosemary O'Neil, vice president of Conway Financial Services in Norwell and past president of the Massachusetts Mortgage Association. "But after the first of the year, that changes across the board."

In January, most companies will have adopted new standards set by Fannie Mae and Freddie Mac, two government-sponsored enterprises that serve as the largest sources of funding for US home mortgages.

This will lead to another ratchet down in demand for housing, starting in January. For the details of the pricing changes, see Tanta's earlier post.