|
|
||||
Jumbo Mortgage Risk Factors | Jumbo Mortgage LTVs | Jumbo Mortgage Credit Scores | Jumbo Mortgage Underwriting | Jumbo Mortgage Interest Rates | Super Jumbo Mortgage Lenders | Jumbo Reverse Mortgages | Super Jumbo Reverse Mortgages Super Jumbo Reverse MortgagesRecent events constraining liquidity, securitization, and demand in the capital markets for structured debt securities have severely impacted the ability of conventional lenders to make loans larger than the Fannie Mae conforming loan limit ($417,000 for a single family residence in most states). This is due primarily to the inability of most mortgage originators to sell or otherwise deliver large loans to investors. Unable to sell, the originating lender must then retain and service the loan utilizing their existing capital. The net effect has been an overall reduction in the Loan To Value permissible in a traditional super jumbo mortgage and an increase in the level of income documentation required for such large mortgages by comparison to the period from 2003 to June 2007, during which time the capital markets were willing and able to purchase these securities. The current constraints are leading mortgagors (homeowners seeking super jumbo mortgages) to make larger cash down payments to make up for the reduction in leverage currently being afforded, and a resurgence in the utilization of mortgages from private banks and other non-traditional and non-MBS lenders.
|
||||
