Jumbo Mortgage Troubles

You have to love this article on how defaults are increasing on Jumbos.  The 3 banks that did the most jumbos were Chase, Wells Fargo, and Bank of America.  Chase’s CEO James Dimon states “We were wrong.  We obviously wish we hadn’t done it.”

A jumbo mortgage is a loan amount greater than the conforming loan limits for Fannie Mae and Freddie Mac of $417,000.

http://online.wsj.com/article/SB123310421416822271.html?mod=todays_us_money_and_investing