Banks Increase Originations of Non-Agency Jumbo Mortgages, Seeing Demand in Secondary Market
June 6, 2013
Banks large and small are increasing their originations of non-agency jumbo mortgages, according to an analysis by Inside Mortgage Finance. Demand for the mortgages in the secondary market has increased significantly recently, giving banks another option besides holding the loans in portfolio. An estimated $54.0 billion in non-agency jumbos were originated in the first quarter of 2013, up 14.9 percent from the first quarter of 2012. Fourteen of the top 20 non-agency jumbo lenders increased their originations during that period, including Bank of America and Chase, which each increased their jumbo originations by about 66 percent. Agency jumbo production Fannie Mae, Freddie Mac and FHA business over the traditional $417,000 conforming loan limit was...[Includes three data charts]