Jumbo mortgages still in short supply

While the subprime sector has been everyone's punching bag for quite some time now, another sector has toiled with its own struggles largely unnoticed from the public eye. The jumbo loan mortgage market plays an important role in the wide mix of mortgage products, especially in the perennially high-cost areas like California. Loans over $417,000 are considered jumbo and nationwide their share last year of the total home loan pie was 16%.

What has happened is that borrowers even with stellar credit find it tough nowadays to locate jumbo money. And the reason is that investors who buy this grade mortgage-backed securities are shying away from them because this past summer the ones they had bought earlier started going bad. To read the entire article, please click on the link in this introduction.