Are Banks Getting Into Jumbo trouble?
J.P. Morgan announced today that they are loosening terms for jumbo mortgages, causing some to wonder if we are repeating the mistakes of the past. Collingwood Chairman, Tim Rood, told Neil Cavuto that, “Im not in the least worried about it” on Fox Business Network’s Cavuto. “These are great times when we are worried about millionaires getting too much credit as opposed to the low end not being served. The federal programs put in place ensure the hard to serve borrowers is being avoided by lenders. Lenders have learned the hard lesson that they haven’t actually sold the credit risk – they’ve just rented it.”