We have been hearing encouraging talk about how the “Private” Mortgage Backed Security Market will resurge in 2013. Private mortgages are those NOT backed by Fannie, Freddie or FHA. This week, a good friend of ours emailed us the following link: http://www.housingwire.com/news/sp-private-label-rmbs-issuance-almost-doubles.
This is very good news for lenders, borrowers and Realtors for a couple of reasons: (1) Lower Jumbo Rates – brokers and mortgage banks can now offer lower jumbo rates than the major retail banks offer. Borrowers will not have to endure poor service and 60 day closings in order to get the best jumbo loan; and (2) “Make Sense” lending guidelines will return. The borrower with $2 million in the bank but unable to qualify for a $600,000 Fannie Mae financed purchase because of some technicality will be able to qualify for competitive financing again.
This is especially good news for brokers because they are most able to “go where the money is.” Many of the new Private Mortgages are issued through mortgage banks that only brokers can access.
For example, one of our mortgage banks, Cole Taylor, just came out with the most competitive jumbo rates on the market. The companies buying the loans from Cole Taylor are two of the investors referenced in the above link. This is very good news for everyone.
Founder/Broker | JVM Lending
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