Justin Bieber Hit By Jumbo Mortgage Shortage!
Hey J to the B, I heard you hit a snag getting a jumbo loan on a home you’re buying because the appraisal came in more than $1m under the $7m asking price.
Welcome to earth Justin. See if you can work these stats into a ballad:
There have only been five offerings of bonds backed by jumbo home loans (aka non-Fannie/Freddie deals) since markets froze in 2008. That includes an offering backed by $325m of jumbo loans two days ago. All five offerings total $1.6b of jumbos. By comparison, issuance peaked at $1.2t in each of 2005 and 2006.
Translation (or your song chorus?): it’s still super hardcore to get jumbos approved cause they gotta be airtight to go in non-government-backed pools. You in the deep end now, dog.
But I’m guessing it’ll all work out…
–Bieber: Housing Crisis Hurting Me Too! (TMZ)
–Redwood Sells 5th Mortgage Bonds Since 2008 as Issuance Thaws (Bloomberg)
-Cheers to HousingWire’s ReWired Blog where I first saw news (and inspired headline)