Regulatory changes in response to the financial crisis of 2008 appear to have incentivized big banks to increase their focus on jumbo mortgages, according to researchers at the Federal Reserve Bank of New York.
Jumbo lending increased a scant 2% in the fourth quarter and held steady on an annual basis in 2020. The sector lost a significant amount of market share as agency refi business boomed. (Includes data chart.)
In areas where home price appreciation rises faster than conforming loan limits, Redwood's network of correspondent lenders gives it an edge in the jumbo loan market.
First-lien mortgage originations were up across all product lines in the second quarter of 2018, but the jumbo market saw the biggest gains from the first three months of the year, according to a new Inside Mortgage Finance ranking and market analysis.