First IndyMac opened up the jumbo window for full doc originations and now National City, whose small-cap warehouse lending division had frozen jumbo fundings for correspondent lenders, has lifted the restriction on jumbo loans as well.
I’m putting this out to our bond trader and secondary friends - what has been the material change in the secondary market regarding jumbos? Have investors started coming back to the table for jumbo? What has happened in the last 72 hours that has allowed these banks to open up these programs again?
As I mentioned in the IndyMac post it was more of a wade back in, with equity positions and full income documentation required on behalf of the borrower, but are investors being convinced that prime jumbo is less of a risk than initially anticipated? It sounds like it to me.
Read More...
[Source: Blown Mortgage]
No comments:
Post a Comment