Will 0ver-$417,000 Mortgage Rates be Lower?

Not all news about the new stimulus package is what it seems to be.  With respect to the projected new conforming mortgage limits, the word is that the Bond Association is insisting that when and if new FNMA limits go into effect, that all FNMA securities be segregated by those under $417,000 and those over $417,000.  What does this mean to the borrower?  It will mean, if this is the case, that the current rate-premium for loans $417,001-730,000 will continue to exist. We will still have a two-tier mortgage pricing structure. The assumption that at least initially, rates will be somewhat higher for the over-$417,000 loans as opposed to the under-$417,000 loans until the perceived risk for the over-$417,000 loans disappears.  There is precedence for this type of situation.  There once were Ginnie Mae One's and Ginnie Mae Twos.  It's not quite the same thing, but it's one example of how investors can insist on separate securities for different risks or perceived risks.