Jumbo securitization’s full-fledged return may still be a question mark but some investment banks have already invested in technology to support it, according to one executive at an automation vendor.
“They’re keenly aware that this is an underserved market,” MortgageCadence CEO Mike Detwiler told this publication, noting that there has been investment in automation to support aggregation on a bulk or flow basis.
“Wall Street aggregators are looking to get into the business, particularly jumbo prime,” he said.
However, with new rules and compliance still taking shape, he said when they would begin funding loans still remains a question.
“They’re not [going to] actually fund the loans until they’ve confirmed the parameters of what they are going to buy,” Detwiler said.
Despite this, he said he believes new jumbo securitization could make more strides as early as 2011.
