The rumor mill keeps throwing out names of additional firms that are toying with the idea of coming to market with a new jumbo securitization. Most of the firms working on a jumbo MBS hope to originate recently funded loans. These are not (I'm told) "re-securitizations." Anyway, these firms are said to be toiling in the jumbo lab: Chimera Investment Corp., The Carlyle Group, PIMCO, and Goldman Sachs. (See the National Mortgage News website later today for an update on the jumbo MBS situation.) Keep in mind that any new jumbo loans being originated today are being held on the balance sheet of the funder or sold to a mega bank. But just because many firms are toying with jumbo MBS structures doesn't mean it will happen. The biggest boost to a jumbo deal getting done is this: with the Dow at 11,000 wealthy Americans that invested in Dow 30 stocks a year ago are sitting on phenomenal gains. At some point, certain "rich" investors will cash out and plow that money into their abode. And that means 'high end' homes will move. But will the financing be there to aid in the market's revival? Stay tuned...
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