Smalltownbanker

Noose Tightens on Non-Conforming Loans

Chase has not stopped Jumbo lending. They have stopped buying the loans from Brokers. This way they can better control the quality of the loans. Jumbo lending has almost always had high liquidity requirements. That should be no surprise. God knows I would not want to borrow $1 million dollars if I did not have $250k minimum liquid assets. It would be a foolish action like what has led to the problems we face today. High end homes are subject to greater fluctuations in market value than low end homes therefore the action is justified.

I am glad that these lenders are making the tough decisions to restrict lending. The problem is that it is too little too late.