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JPMorgan, Citi Expanding Jumbo Lending

By Anonymous

From Bloomberg: JPMorgan, Citigroup Expand in ?Jumbo? Home Mortgages

JPMorgan resumed buying new jumbo loans made by other lenders this month, after halting purchases in March, spokesman Tom Kelly said. ... Citigroup is again offering the loans through independent mortgage brokers, spokesman Mark Rodgers said.
...
New jumbo lending, which includes refinancing as well as debt for home buyers, totaled $348 billion in 2007, before dropping to $98 billion last year as mortgage companies tightened standards, according to newsletter Inside Mortgage Finance. Jumbo lending slowed in the fourth quarter to $11 billion, or 4 percent of the mortgage market, the lowest quarterly amount since Inside Mortgage Finance started tracking that data in 1990.
...
Bank of America Corp. was the largest jumbo lender in the first quarter, with almost $9 billion in new loans, followed by Citigroup ...

More than 7 percent of prime-jumbo loans backing securities sold in 2006 and 2007 were at least 90 days late, Standard & Poor?s said yesterday.

This will help a little - but the standards are pretty tight and there more problems coming for the mid-to-high end (like Option ARM recasts and few move-up buyers).

Full post as published by Calculated Risk on June 26, 2009 (boomark / email).