Jumbo: Mega-mortgage finance looks to cash in on new found opportunity
The housing crisis of the last decade taught the American public plenty about subprime and prime mortgage lending. But we rarely heard about the market for jumbo loans, that is mortgages typically valued at $500,000 or more. When the market crashed, this entire sector was essentially frozen. Although that has changed, there is still a common misconception that the market for jumbo loans is stagnant, null and void, or stuck in limbo. Market consensus says it's probably too early to classify current jumbo activity as a resurgence in the marketplace, but factors including supply and demand are definitely improving. Even securitization in this sector has planted its first roots. All in all, things are alive and kicking, but the market still has yet to get back on its feet.