Skip to main content

Prospect Mortgage Offering Jumbo Loans on Secondary Market

Mar 10, 2011

Prospect Mortgage has begun offering prime jumbo loans with balances up to $2 million to the secondary market. The prime jumbos being offered by Prospect are 30-year, fixed-rate and adjustable-rate mortgages (ARMs) with minimum credit scores of 700 and a 20 percent downpayment for balances up to $1 million, and a 30 percent downpayment and two appraisals for loans between $1 million and $2 million. Since the market for private-label mortgage-backed securities (MBS) collapsed in late 2007, nearly all mortgage securities currently offered are those backed by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. But growing demand from Wall Street and investors for jumbo mortgage issues has signaled an emerging opportunity that is gathering momentum. In April 2010, a publicly traded real estate investment trust offered the first jumbo mortgage-backed security the market had seen in 18 months. "Although Congress has extended the GSE's upper-end conforming limit of $729,750 until September 30 of this year, that ceiling is only available for a limited number of high-cost areas," said Ron Bergum, chief executive officer of Prospect Mortgage. "We are focused on producing fully documented prime loans through well-qualified buyers who need jumbo mortgages in markets with a $417,000 conforming limit, and then offering those loans to investment firms that are first movers back into jumbo securitization."
About the author
Published
Mar 10, 2011
CMG Acquires Norcom Mortgage's Retail Side

The 25-branch addition will enhance CMG’s northeastern presence from Maryland to Maine.

Apr 12, 2024
CFPB Weighs Title Insurance Changes

The agency considers a proposal that would prevent home lenders from passing on title insurance costs to home buyers.

NEXA Begins Search For New CFO

NEXA CEO retires the president position after Mat Grella's termination.

Apr 01, 2024
Recessions: Know What’s What

Volatile components present few indications about subsequent growth

Mar 28, 2024
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024