Sherman Oaks, Calif.-based Prospect Mortgage reports that it began offering prime jumbo loans with balances of up to $2 million to the secondary market in February.
The prime jumbos being offered are 30-year, fixed-rate and adjustable-rate mortgages with minimum credit scores of 700. The lender is requiring a 20% down payment for balances of up to $1 million, and a 30% down payment and two appraisals for loans between $1 million and $2 million.
‘We are focused on producing fully documented prime loans through well-qualified buyers who need jumbo mortgages in markets with a $417,000 conforming limit, and then offering those loans to investment firms that are first movers back into jumbo securitization,’ says Prospect's CEO, Ron Bergum.
Although it is expanding its jumbo lending efforts in 2011, Prospect's origination book of business is mostly made up of conforming loans, Bergum adds.
SOURCE: Prospect Mortgage