Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Is the Jumbo Loan Market Dead?
"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 for Jumbo loans in the secondary markets.  If lenders cannot find buyers for loans in the secondary markets, then the loans they cannot sell simply sit on their books, all the while tying up the lenders money in one loan and prohibiting the lenders from loaning any new money on new loans.
Because so many lenders were literally stuck with these Jumbo loans on their books, they simply quit offering them or priced the interest rates so high that either no one wanted a Jumbo loan or the lender was guaranteed to make significant profits from the higher rates while ... more

__________________________________________________
Are you on The Rain? Grow Your Network!