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Volume 2011 - Number 24

December 2, 2011

Downloads Available: Top Non-Agency Jumbo Producers in 2011 - 3Q11 (20 producers)


Non-Agency Jumbo Lending Already Growing Before Loan Limits Decline

Banks significantly increased their non-agency jumbo originations even before the high-cost conforming loan limit was lowered in October, with jumbo originations outpacing overall originations during the period. A number of lenders large and small continue to see opportunities in the jumbo space, though securitization is likely to remain limited in the near-term. Some $27.0 billion in non-agency jumbos were originated in the third quarter of 2011, according to estimates by affiliated publication Inside Mortgage Finance ... [Includes one data chart]

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Poll

Are current mortgage underwriting standards too tough?

Yes, they don’t reflect current market conditions and need to be adjusted to allow borrowers with below 700 FICO scores and smaller downpayments to qualify for mortgages.
Yes, and something needs to be done to significantly reduce repurchase or buyback risk so that lenders don’t apply even tougher underwriting overlays.
No, the standards are appropriate given current risks and the major default problems the mortgage market has experienced over the past several years.

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