Tag Archives: mortgages covid19

Lenders are slowly to offer jumbo mortgages again

Lenders are slowly and selectively starting to underwrite jumbo mortgages again after all but abandoning the market as the pandemic got underway.

Since February 2020, jumbo mortgage originations have plunged 57 percent, according to data from the Mortgage Bankers Association (MBA). https://www.msn.com/en-us/finance/realestate/lenders-are-slowly-starting-to-offer-jumbo-mortgages-again/ar-BB16ESKD

The once-robust market for jumbo loans, and some other types of loans, collapsed at the onset of the pandemic. Lenders worried about the ability of borrowers to repay their loans as unemployment skyrocketed.

“There was no secondary market to purchase these loans and the banks can only hold so many on their balance sheets,” says Mitch Ohlbaum, real estate broker and president of Macoy Capital in Beverly Hills, California. “In fact, there was no secondary market for jumbo loans, non-QM loans, private loans or much of anything to be honest.”

read more at: https://www.msn.com/en-us/finance/realestate/lenders-are-slowly-starting-to-offer-jumbo-mortgages-again/ar-BB16ESKD