A rising home price disparity may lead to an increase in jumbo loan limits.

Chase tops the competition in the jumbo servicers market in the second quarter of 2023.

Originations of non-agency jumbo mortgages increased by 35% from the first to the second quarter. JPMorgan Chase’s acquisition of First Republic Bank bolstered Chase’s jumbo lending efforts. (Includes data chart.)

The jumbo mortgage sector is evolving as the cost of higher-priced homes has continued to grow exponentially.

Banks are in cost-cutting mode as high interest rates and looming changes to capital requirements have led to uncertainty in the mortgage market.

With Wells Fargo exiting the correspondent channel in the first quarter, no single lender filled the bank’s void. Still, the correspondent channel actually gained market share in the conventional-conforming sector. (Includes two data charts.)

Reverse mortgage originations are not immune to the impacts of elevated interest rates, a DBRS Morningstar analyst notes.

Banks are reducing their appetite for new mortgage originations, particularly among non-agency products. Nonbanks see an opportunity to take some market share.

Annaly was the largest nonbank issuer of prime jumbo and expanded-credit MBS in 2022...

At one point, First Republic Bank was a major contributor to non-agency MBS. In recent years, the bank retained its production, though JPMorgan Chase could move to sell the loans.