Competition among banks for the mortgage business of wealthy consumers is driving down interest rates on jumbo mortgages to the point that they're lower than conforming loan products.

Increased regulatory requirements are driving origination costs up, and in turn, lowering profits so much that originating mortgages has become a losing venture for many originators. By competing for more affluent consumers, banks can boost their bottom lines and target these borrowers for other financial products, key factors in the interest rate declines for jumbo loans.

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