Las Vegas, NV Mortgage Industry: Jumbo Loans Indymac gives back

You read it right!  One of those loans that was taken away has now been given back!  According to the following story by housingwire.com Indymac Bank has decided "it will again begin originating prime, single-family residential, full documentation jumbo loans".  This is great news!  In an era of slashing loan products, Indymac decides that Prime Jumbos are not a default waiting to happen!  I think we will start seeing more of this in the next 3 to 6 months.  Banks will have to do analysis on specific loan scenarios to see which of them perform and which do not!  As they come to their conclusions I think we will see more options back on the table. 

Indymac Announces It Will Resume Funding Prime Jumbos by housingwire.com, August 22, 2007

Per Indymac's corporate blog, the Pasadena-based thrift said today it will again begin originating prime, single-family residential, full documentation jumbo loans:

These prime jumbo products will be available through all Indymac's distribution channels for borrowers providing full documentation only. The product offerings include 5/1 adjustable rate mortgages(ARMs), 7/1 ARMs, and 15- and 30-year fixed rate products. The following provides the minimum standards a borrower must meet to qualify for these products:

• A borrower with a FICO score of 680 and above and a down payment, or equity, of 25 percent is eligible for a loan of up to $2 million;
• A borrower with a FICO score of 680 and above and a down payment, or equity, of 20 percent is eligible for a loan of up to $1 million;
• A borrower with a FICO score of 700 and above and a down payment, or equity, of 15 percent and mortgage insurance, is eligible for a loan of up to $750,000.

Indymac said it will hold these loansin its investment portfolio until market conditions improve. Noticably absent from today's announcement is the resumption of Alt-A funding. (Story from housingwire.com August 22, 1973)

My broker, Five Star Mortgage is approved with Indymac Bank so if you have a Jumbo Loan Scenario please feel free to contact me directly!

Your mortgage partner for life,