Skip to main content

Jumbo Mortgages Slowly Making Their Way Back

Navi Persaud
Jul 13, 2020
Large expensive home.

Jumbo mortgage offerings are slowly popping up from a number of lenders according to a Bankrate report. It says jumbo mortgages plunged 57% from February 2020 until now due to the COVID-19 pandemic. As unemployment numbers increased, lenders became worried about borrowers' ability to repay their loans.

"There was no secondary market to purchase these loans and the banks can only hold so many on their balance sheets," says Mitch Ohlbaum, real estate broker and president of Macoy Capital in Beverly Hills, California, according to Bankrate. "In fact, there was no secondary market for jumbo loans, non-QM loans, private loans or much of anything to be honest."

However, despite tightened requirements in the market, Joel Kan, assistant vice president of the Mortgage Bankers Association, revealed that a segment of the population is receiving jumbo loans. "Those who are creditworthy (who have high credit scores) and meet the larger loan balance are still able to find some jumbo loans out there," said Kan, according to the report.

It's certainly not easy to secure a jumbo loan. According to BankRate, borrowers generally need a minimum FICO score of 800 and a typical down payment of 20% to secure a jumbo mortgage loan. "The folks getting these loans are those who weren’t impacted, or as impacted, by the pandemic in the sense of getting furloughed or laid off," said Kan. "These are people who are more likely to be able to work remotely and still make the same amount of money they’ve always made. It’s a different segment of the market."

Click here to read more about jumbo mortgage offerings making their way back onto the market. 

Published
Jul 13, 2020
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Tech
Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021