From Daily Real Estate News April 26, 2010
The jumbo mortgage market is taking small steps toward normalcy.
In the first few months of 2010, Wells Fargo, Bank of America, and U.S. Bank have become more aggressive in originating jumbo mortgages, says A.W. Pickel, president of LeaderOne Financial, a mortgage lender in Overland Park, Kan. "If you underwrite carefully and cautiously, a jumbo loan is a very good money maker for a bank," he says.
Last week, Redwood Trust Inc. announced plans to sell mortgage-backed securities based on high-quality jumbo loans, one of the first private firms to do so since 2008.
If the program is successful, it could lead to more investors taking the leap and a loosening of the jumbo market, says Michael Fratantoni, vice president of research and economics for the Mortgage Bankers Association.
Source: MarketWatch, Amy Hoak (04/26/2010)
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