The reduction of the nonconforming loan limits at the end of September will bring an end to the agency Jumbo conforming asset class. This can also cause slower prepayment rates as well as higher refinancing rates available to these Jumbo borrowers.

Conforming Jumbos emerged as a result of the Securities Industry and Financial Markets Association's decision not to include higher-balance limit MBS in TBA trading, explained analysts at FTN Financial.

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