A Jumbo Recovery

In Late Spring, the first jumbo loan securitization closed since 2008. Marking what could be the beginning of a recovery for jumbo loans. The $238 million deal is collateralized by 255 loans that exceed the Fannie Mae and Freddie Mac's conforming high-cost loan limit of $729,750. Since 2008, jumbo originations have been limited to portfolio loans made by large national lenders. Now that investors are showing a willingness to purchase secuities of nongovernment-backed loans, a wider variety of lenders could return to the market.

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