Liberal underwriting was not limited to subprime loans. Alternative-A, or Alt A, mortgages are granted to borrowers with good credit scores who want more flexibility than traditional mortgages offer for the overall level of risk they pose. Prime jumbo loans are larger than government-chartered Fannie Mae or Freddie Mac can buy, or usually $417,000 for single family homes.
Non-agency bonds backed by first mortgages in the Alt-A category total more than $700 billion, trailing the more than $800 billion in subprime debt, according to a March report from analysts at Credit Suisse Group. About $500 billion in jumbo-loan bonds are outstanding, Credit Suisse said.
Hi, I'm Jen and I'm here to help. Submit your complaint here or get help here
This article, Jumbo Loans Defined, is just one of our articles from our Mortgage Crisis Daily
The Subprime Mortgage Crisis Before, During, and After
Mortgage Crisis Daily monitors banking problems and customer complaints and has done so since 1999. Writers hold no stock positions. Some material is used under the fair use copyright act.
We use Thomson Reuters News Service Calais in all production material but are not associated with Thomson Reuters, banks, or financial institutions in any way.
