Many of the mortgages in Manhattan and the Hamptons are of the jumbo kind, over $417,000 or even the $729,750 level that has been instituted in 2008.  Are there options for those borrowers who may need loan modifications?

jumbo vs conforming rate spread

jumbo vs conforming rate spread

Anything bigger is called a “jumbo” loan — and not only is the government ignoring this segment of the market, so are lenders, few of whom are originating or refinancing jumbo mortgages. The reason: Jumbo loans are too large to be guaranteed by a government-backed mortgage agency, such as Fannie Mae or Freddie Mac, meaning banks assume the risk if the loan goes bad. In the current lending environment, few banks want to take on any risk.

Check out the WSJ story, click the link below

Jumbo Mortgages, Jumbo Headaches