Good news about jumbo loans

The New York Times reports "Lenders Loosen Reins on Jumbos." Writes Bob Tedeschi,

IT may be too early to announce a thaw of the mortgage market, but some early signs have emerged, at least in one important category: jumbo loans.

Mortgage industry executives say conditions are improving for those borrowing more than $729,750, the threshold for jumbo mortgages in the tristate region. Not only is it starting to get easier to qualify for these loans, they say, but rates are also coming down.

What does that mean for the market?

David Adamo, the chief executive of the Luxury Mortgage Corporation, a broker and banker in Stamford, Conn., said his company was offering jumbo loans on behalf of more lenders now than late last year. “It’s an indicator that the high end of the market is beginning to recover,” he said.

Too optimistic an approach? Perhaps, because "one element of the mortgage equation has not changed as sharply: borrowers must still have excellent credit to qualify for the loans."

I think it's too early to tell what the impact will be in New Jersey. What do you think?

Read the Times article here.

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