So-called “jumbo” mortgages are back in vogue. Although still far below 2007 levels, more smaller and regional lenders, as well as some big banks, are issuing more large loans, The Wall Street Journal reported.
The increase in jumbo mortgages could help boost home sales in wealthier areas. Typically, jumbo mortgages are more than $417,000. In expensive metro areas, though, jumbo loans usually exceed $700,000.
During the first six months of 2010, JP Morgan Chase’s jumbo-mortgage volume jumped 146.2% compared to a year earlier. Wells Fargo and PHH Corp also saw increases of 47.5% and 64.6%, respectively. However, the trend isn’t confined to big lenders. Smaller banks have also issued more jumbo loans, since they can generally process them faster.
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