Remember when I told you that jumbo mortgage capital, for La Jolla homebuyers, was becoming more readily available? I spent the better part of the first and second quarters, searching for jumbo mortgage purchasers in the secondary mortgage market. That project was rewarded in late May:
I thought I was the lone capitalist voice in a market dominated by Wall Street welfare queens. Naturally, Randazzo's work inspired me to action. Yesterday, World Wide Credit Corporation organized a division to provide "capitalist solutions" to the California mortgage market and we named it Jumbo Mortgage Capital. We've identified non-traditional lending sources, normally eschewed by most local lenders, and can offer the following products to California home buyers and owners:
- fixed-term ARMs, for loan amounts up to $4,000,000 (fixed terms range from 3 years to 10 years)
- 30-year fixed-rate loans for loan amounts up to $4,000,000
- stated-income jumbo mortgage loans for loan amounts up to $2,000,000
- stand-alone Home Equity Lines of Credit up to $500,000
- jumbo mortgage solutions, with just 10% down payment, up to $1,000,000
I talked about this in the Wall Street Journal last week. While most of the people interviewed were expressing tenuous fear, about the government pull back, I explained that private money sources were ready, willing, and able to lend:
Investors and some academics say the government needs to shrink its footprint if private markets are to re-emerge, and that big loans for pricey homes are a reasonable place to start. "Credit unions, small banks, and hedge funds are all eager to buy these loans," said Brian Brady, a mortgage banker at World Wide Credit Corp. in San Diego.
While I was right about the trend, I was wrong about the size; the jumbo mortgage product is explosion is taking off with the intensity of the final space shuttle. In today's Wall Street Journal, there is evidence that supports the claim I made, in the same publication, just ten days ago. Yet, even the Wall Street Journal is focused on the agency-jumbo products rather than the capitalist-inspired private lenders.
We are making jumbo mortgage loans in La Jolla. Should you need to borrrow up to $4,000,000, call me and I'll try to help you find the money.