What happened to the Jumbo Loan Market?

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The secondary market for jumbo loans remains slim. The ability to create and sell jumbo mortgage backed securities remains problematic. There is no market for the securities and no confidence in the rating agencies' or issuers ability to price the risk. Some large banks and community banks have developed portfolio jumbo loan products. But they offer them only in their primary markets. There are only a couple of large banks who are offering jumbo loans in the national secondary market. By all accounts, they are keeping those on their balance sheet.

It is a good time for homebuyers to obtain a mortgage that falls under the conforming loan limit because Fannie Mae and Freddie Mac guarantee these loans.

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