Jumbo Loans

October 6, 2022

Piggyback Lending Shrinks During the Pandemic Housing Boom

At a time when record-low interest rates prompted home-buying frenzies, surging property values and mortgage lending, piggyback financing has missed out in the current pandemic housing boom.

March 4, 2022

2021: A Banner Year for Jumbo Loan Securitization

An unexpected side effect of the pandemic has been the extraordinary rise in home prices during 2021. This trend has increased the need for jumbo loans in 2021, spurring the largest issuance since 2007.

June 28, 2021

Jumbo Loans No Longer Cheaper than Conforming Loans

While the mortgage rate dropped to a record low in 2020, the jumbo-conforming mortgage rate spread widened. In other words, jumbo loans were relatively more expensive than conforming loans.

November 4, 2020

Jumbo-Conforming Mortgage Rate Spread Widened During the Pandemic

Spread highest in last 7 years after adjusting for risk, location, and loan-size The COVID-19 pandemic has had a big effect on the mortgage market.  Along with a drop in mortgage rates to a record low, the jumbo-conforming mortgage rate spread has also been affected. Before 2013 mortgage rat...

August 22, 2018

Why Are Jumbo Loans Cheaper than Conforming Loans?

Increased Conforming G-Fee, Higher Jumbo Credit Standard, and Risk-Based Pricing Historically large-balance mortgage loans, known as ‘jumbo’ loans, had a higher interest rate than conforming loans.[1] However, since mid-2013 a jumbo loan has been cheaper to borrow than a conforming mortgage ...