Fannie Mae-No Politics (FNMA)

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Jumbo Originations Bounce Back in 2Q; Share of Total Production Soars

Residential lenders funded roughly $59.0 billion in non-agency jumbo mortgages during the second quarter, a 34.1 percent gain from the prior period, according to figures compiled by Inside Mortgage Finance.

But halfway through the year, jumbo production was off by 25.9 percent compared with the first half of 2013. However, total mortgage production declined by even more, prompting a significant increase in the market share for jumbos.

Non-agency jumbos accounted for 19.4 percent of mortgages originated through the two quarters in 2014, up from a 14.4 percent market share for all of 2013 and nearly double the level of recent years.

The last time the jumbo share of total originations was close to its current level was in 2005 when fundings accounted for 18.3 percent of total production. (In that year, $570 billion in jumbos were funded.) For further analysis and exclusive jumbo origination rankings, see the new edition of Inside Nonconforming Markets.