Mortgage bankers originated roughly $44.2 billion of jumbo loans in the second quarter, a handsome 82% increase from the same period a year ago, according to new figures compiled by National Mortgage News and the
According to interviews with some lending executives, it appears that purchase money jumbos are beginning to pick up steam.
Jim Francis, executive vice president of Union Bank, San Francisco, recently told NMN that purchase loans are running at 35% of originations today at his shop compared to 20% in early 2012. (About 90% of Union Bank’s volume entails jumbos.
Francis noted that in the California market, some jumbo buyers were using “all cash” to buy homes but that trend may’ve petered out, which borrowers are now turning to lenders to finance their purchases of high-end homes.
Wells Fargo, once again, led the pack in jumbo production, funding $6.5 billion in 2Q compared to $4.4 billion in the year ago period. (Wells’ figure, however, is an estimate based on previously reported numbers.)
PHH Mortgage ranked second with $4.56 billion, followed by Bank of America at $4.44 billion. PHH’s volume soared by 96%, B of A’s by 91%. It appears that jumbo lending is one of the few areas in residential finance that B of A is not retreating from.
PennyMac, the publicly traded REIT, cracked the top five for the first time, funding $2.4 billion, ranking fifth overall, NMN found. In the year-ago quarter PennyMac reported no volume.
Originally conceived as an investor in nonperforming mortgages, California-based
