As lenders try to capture more of the high-end housing market, J.P. Morgan Chase announced that it's loosening the underwriting standards for issuing jumbo mortgages, those that exceed $417,000 in most parts of the country or $625,500 in pricier areas. The bank is lowering its minimum credit score and down payment requirements for mortgages up to $3 million.
Chase's decision follows similar steps from Bank of America Corp., Wells Fargo, and other banks for jumbo mortgage requirements.
As such, the jumbo market is getting bigger. Jumbo originations in the second quarter climbed to an eight-year high of $93 billion – a 58 percent increase from a year ago, according to Inside Mortgage Finance estimates. Jumbo mortgages issued by lenders last year accounted for about 20 percent of all first-lien mortgages, up from 5.5 percent in 2009.
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