jumbo: Is the Jumbo Loan Market Dead?
- 11/16/10 03:11 PM
"Jumbo loans" are loans above Fannie Mae and Freddie Mac loan limits, which in the state of Alabama is $417,000. In 2008, when the financial markets first felt the heat from the mortgage meltdown, many mortgage companies either went out of business or dropped their non conforming (any loan program that wasn't marketable to Fannie, Freddie, or HUD) loan products off of their menu. When this happened, Jumbo loans basically became the baby that was thrown out with the bath water. Despite the fact that many of these loans were very good quality loans, there was very little, if any, demand (2 comments)