Tuesday, November 30, 2010

Foreclosures Keep Delinquency Growth in Check

Foreclosure Activity Keeps Delinquency Growth in Check

Servicers have picked up the pace as they work through a backlog of home loans that have languished in late-stage delinquency status for months, and in some cases well over a year.

Liquidation activity has accelerated, and as a result, Lender Processing Services (LPS) says lenders’ foreclosure inventories – which the company defines as loans that have been referred to a foreclosure attorney but have not yet reached the final stage of foreclosure sale – have risen “dramatically.”

A logical side effect is that increases in delinquency numbers have remained subdued as loans are pushed out the end of the pipeline faster than new delinquencies

enter. For agency portfolios, i.e. Fannie Mae and Freddie Mac, LPS says the result has been a “rapid decline” in mortgages classified as delinquent.

Both GSEs have reported a steady fall-off in their seriously delinquent loans (90 or more days past due) since early this year. Fannie Mae’s serious delinquency rate has dropped from 5.59 percent in February to 4.70 percent as of the end of August. Freddie Mac’s rate fell from 4.20 percent to 3.83 percent during that same time period. Freddie says it slipped further to 3.82 percent in October.

Looking at the industry’s overall delinquencies, LPS reports that as of the end of October, 9.29 percent of the nation’s outstanding mortgages were at least 30 days past due but not yet in foreclosure. That’s nearly 5 million loans, with 2.2 million in the 90-day-plus bucket.

The 9.29 delinquency rate was flat compared to the previous month, and down 8.4 percent from a year earlier, according to LPS’ analysis.

Another 2 million loans were in the process of foreclosure at October month-end, resulting in a foreclosure inventory rate of 3.92 percent. That’s up 2.1 percent from the previous month and 5.2 percent from October 2009.

Even with subdued growth in the delinquency rate, LPS says delinquencies remain about 2.7 times above the historical average. Foreclosure inventories are 7.4 times higher, and rising.

Posted via email from RealtorPeg

Monday, November 29, 2010

Shadow Inventory Up 10%+ Aug 2009 to Aug 2010

Shadow Inventory Jumps More Than 10% in One Year

The industry’s ominous shadow inventory of REOs that have yet to hit the market and soon-to-be-REOs increased by more than 10 percent between August 2009 and August 2010, according to new figures released by CoreLogic Monday.

CoreLogic defines shadow inventory as the number of properties that are seriously delinquent (90 days or more), in foreclosure, and bank-owned that are not currently listed for sale on multiple listing services (MLSs).

Based on the company’s calculations, the shadow supply of residential properties reached 2.1 million units in August of this year – a volume that will take eight months to clear at today’s sluggish pace of home sales. That’s up from CoreLogic’s estimates a year ago of 1.9 million units, or a five-months’ supply when sales activity was stronger.

Mark Fleming, chief economist for CoreLogic, said, “The weak demand for housing is significantly increasing the risk of further price declines in the housing market. This is being exacerbated by a significant and growing shadow

inventory that is likely to persist for some time due to the highly extended time-to-liquidation that servicers are currently experiencing.”

CoreLogic says the visible inventory of properties for sale totaled 4.2 million homes at the end of August, essentially the same as in August 2009. The visible inventory measures the unsold stock of new and existing homes that were on the market. CoreLogic says the visible months’ supply increased to 15 months in August, up from 11 months a year earlier due to the decline in sales during the last few months.

Add to that the 2.1 million homes hidden in the shadows, and CoreLogic says the total months’ supply of unsold homes was 23 months in August. Typically a reading of six to seven months is considered normal, so the current total months’ supply is roughly three times the normal rate.

In its analysis, CoreLogic also found that the highest levels of distressed months’ supply – which is calculated as the ratio of the number of properties that are 90-plus days delinquent to the number of sales – are in Florida, Michigan, and California.

Although Phoenix and Las Vegas have high months’ supply of total housing inventory, they are not among the markets with the highest distressed months’ supply because of the increased number of distressed sales that have been occurring in those markets, CoreLogic explained.

The markets with the lowest distressed supply are all in Texas, which CoreLogic says largely bypassed the housing boom and subsequent bust

Posted via email from RealtorPeg

Sunday, November 28, 2010

The New FTC Rule to Protect Homeowners from Mortgage Relief Scams

Mortgage Relief Scams-New FTC Rule Aims to Protect Homeowners

A new Federal Trade Commission (FTC) rule bans providers of foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they decide is acceptable.

According to the FTC, the Mortgage Assistance Relief Services (MARS) rule was issued to protect distressed homeowners from mortgage relief scams that have proliferated during the mortgage crisis. The FTC warns that many of these operations pretend to be affiliated with the government and government housing assistance programs.

“At a time when many Americans are struggling to pay their mortgages, peddlers of so-called mortgage relief services have taken hundreds of millions of dollars from hundreds of thousands of homeowners without ever delivering results,” said FTC chairman Jon Leibowitz. “By banning providers of these services from collecting fees until the customer is satisfied with the results, this rule will protect consumers from being victimized by these scams.”

Under the advance fee provision, mortgage relief companies must also provide a written document from the lender or servicer describing the key changes to the mortgage that would result if the consumer accepts the offer. They must also remind consumers of their right to reject the offer without any charge.

The MARS rule also requires that advertising and communications directed at individual consumers (such as telemarketing calls) disclose that the company is not associated with the government and their services are not approved by the government or the consumer’s lender. If companies tell consumers to stop paying their mortgage, they must also tell them that they could lose their home and damage their credit rating.

Companies must also explain to consumers that they can stop doing business with the company at any time and can accept or reject any offer the company obtains from the lender or servicer. If they reject the offer, they don’t have to pay the company’s fee, which the company must also disclose.

Additionally, the MARS rule prohibits mortgage relief companies from making any false or misleading claims about their services, including claims about the likelihood of consumers getting the results they seek, the company’s refund and cancellation policies, and the cost of services, among other claims.

Attorneys are generally exempt from the new rule if they are engaged in the practice of law, licensed in the state where the consumer or the dwelling is located, and complying with state laws and regulations governing attorney conduct related to the rule.

All provisions of the rule-except the advance-fee ban, which will be effective January 31, 2011-will become effective December 29, 2010

Tim Fiero from Home Services Lending is your Neighborhood Mortgage Consultant. Stop by and visit Tim in the Prudential California Realty Mission Hills Office at 890 W. Washington or call 619-299-8020

Posted via email from RealtorPeg

Saturday, November 27, 2010

CA Association of Realtors New Home Seller Program

Mary "Peg" Heying
REALTOR® - CA DRE License # 01726709
Prudential CA Realty
890 W Washington St.
San Diego, CA 92103
Cell:  (619) 301-8589

Posted via email from RealtorPeg

Monday, November 22, 2010

NABE Survey: Economic Growth Will Be Tepid Through 2011

NEW YORK – The pace of the U.S. economic recovery will remain steady but slow in the face of persistently high unemployment and heavy debt burdens, according to a new survey.

The National Association for Business Economics survey, set to be released Monday, found economists now expect growth of 2.7 percent this year, up slightly from the previous forecast of 2.6 percent.

For 2011, the group still expects an economic expansion of 2.6 percent.

The likelihood of either stagflation or relapse into recession was seen as low. But high unemployment, debt and severe loss of wealth are expected to hamper a more robust rebound, according to the survey

"Confidence in the expansion's durability is intact, but panelists remain concerned about high levels of federal debt, a continuing high level of unemployment, increased business regulation, and rising commodity prices," said Richard Wobbekind, president of NABE and an associate dean of the Leeds School of Business at the University of Colorado. "

The 51 members surveyed by the group said they also expect consumer spending to remain modest, with this year's holiday retail sales expected to rise just 2.5 percent from last year.

Meanwhile, the number of jobs employers add to their payrolls is forecast to average less than 150,000 a month before picking up in the latter half of next year. The unemployment rate is expected to remain elevated at 9.5 percent or higher through early next year. It's expected to ease only slightly to 9.2 percent by the end of 2011.

That would mark the weakest post-recession job recovery on record, the group said.

The outlook on housing also remained tepid, with the group scaling back its expectations for housing starts this year to 720,000, from its forecast of 750,000 last month.

The bright spot in the survey was business spending, with sustained, double-digit growth projected through the end of next year. Spending on structures is now expected to grow 1.8 percent in 2011. That's still weak, but better than the previous forecast of 0.2 percent contraction.

NABE panelists also said they expect the federal funds rate to remain near zero until late next year. The 10-year Treasury note is now expected to yield 3.25 percent by the end of 2011, compared with the 3.75 percent forecast last month.

The survey was taken between Oc.t 21 and Nov. 4.

Posted via email from RealtorPeg

Sunday, November 21, 2010

San Diego Uptown Area Median Condo Prices thru Oct '10

Greetings,

The latest in San Diego SOLD home prices through Oct, 2010.

For CONDOS, in the 13 different zip codes which I track, the median sold prices look like:

Ø  Compared to 1 mo ago, 54% of zips either went up in market value or stayed essentially the same (within +/-5% market value). Most notable of these was Point Loma with a 179% increase over values of the prior month but only 3 condos were sold in the most current month, so this would appear to be a normal, idiosyncratic blip of deviation for Point Loma relative to our long-term rise & fall of home values for most San Diego zip codes.

Ø  Compared to 2 mos ago, the market value of 62% are still either at a higher value or stayed essentially the same (within +/-5%) as they were 2 mos ago. Here we have our leader being Mission Valley with a 24% increase over values of 2 mos ago with 13 condos sold in the most current month. Also, over both of the past 2 mos straight, 38% of zips have shown an increase or stayed essentially the same in market value for both months.

Ø  Compared to 1 year ago, we have 62% with a market value either higher or essentially the same (within +/-5%).  In the 1 yr category with a 49% increase, is Kearney Mesa / Linda Vista having 8 condos sold in the most current month.

 To summarize:   The below chart gives you an excellent overview of San Diego by comparing the percentages of my tracked zip codes that either increased or held steady in home value:

OCT 2010

CONDOS

HOUSES

1 MO AGO

54%

66%

2 MO AGO

62%

66%

1 YR AGO

62%

45%

For more info on falling-rising home prices, scroll down this blog a bit further and check out "Oct, 2010 Foreclosures Down 4% from Sept, 2010", and also see further down, "Inventory of Homes For Sale Drops".

Cheers Until Next Month!  - Peg  

Mary "Peg" Heying
REALTOR® - CA DRE License # 01726709
Prudential CA Realty
890 W Washington St.
San Diego, CA 92103
Cell:  (619) 301-8589

Posted via email from RealtorPeg

San Diego Clairemont Area Median Condo Prices thru Oct '10

Greetings,

The latest in San Diego SOLD home prices through Oct, 2010.

For CONDOS, in the 13 different zip codes which I track, the median sold prices look like:

Ø  Compared to 1 mo ago, 54% of zips either went up in market value or stayed essentially the same (within +/-5% market value). Most notable of these was Point Loma with a 179% increase over values of the prior month but only 3 condos were sold in the most current month, so this would appear to be a normal, idiosyncratic blip of deviation for Point Loma relative to our long-term rise & fall of home values for most San Diego zip codes.

Ø  Compared to 2 mos ago, the market value of 62% are still either at a higher value or stayed essentially the same (within +/-5%) as they were 2 mos ago. Here we have our leader being Mission Valley with a 24% increase over values of 2 mos ago with 13 condos sold in the most current month. Also, over both of the past 2 mos straight, 38% of zips have shown an increase or stayed essentially the same in market value for both months.

Ø  Compared to 1 year ago, we have 62% with a market value either higher or essentially the same (within +/-5%).  In the 1 yr category with a 49% increase, is Kearney Mesa / Linda Vista having 8 condos sold in the most current month.

 To summarize:   The below chart gives you an excellent overview of San Diego by comparing the percentages of my tracked zip codes that either increased or held steady in home value:

OCT 2010

CONDOS

HOUSES

1 MO AGO

54%

66%

2 MO AGO

62%

66%

1 YR AGO

62%

45%

For more info on falling-rising home prices, scroll down this blog a bit further and check out "Oct, 2010 Foreclosures Down 4% from Sept, 2010", and also see further down, "Inventory of Homes For Sale Drops".

Cheers Until Next Month!  - Peg 

Mary "Peg" Heying
REALTOR® - CA DRE License # 01726709
Prudential CA Realty
890 W Washington St.
San Diego, CA 92103
Cell:  (619) 301-8589

Posted via email from RealtorPeg

San Diego Uptown Area Median House Prices thru Oct '10

Greetings,

The latest in San Diego SOLD home prices through Oct, 2010.

 For HOUSES in the 18 different zip codes which I track, the median sold prices look like: 

Ø  Compared to 1 mo ago, 66% of our zips either went up in market value or stayed essentially the same (within +/-5% market value). Here, South Park / Golden Hill with an 18% increase on 12 houses sold in the most current month is virtually tied with University City at a 17% increase and also 12 houses sold in the most current month.

Ø  Compared to 2 mos ago, the market value of 66% are still either a higher value or stayed essentially the same (within +/-5%) as they were 2 mos ago. The leader in the 2 month category is again South Park / Golden Hill with a 15% increase. And, 45% of zips have shown an increase or stayed the same in market value for the past 2 mos straight.

Ø  Compared to 1 year ago, we have 45% of zips with a market value either higher in market value or essentially the same (within +/-5%) compared to 1 yr ago. Here we have one more time, South Park / Golden Hill leading the pack with a 35% increase and 12 houses sold in the most current month above market values of 1 yr ago.

To summarize:   The below chart gives you an excellent overview of San Diego by comparing the percentages of my tracked zip codes that either increased or held steady in home value:

OCT 2010

CONDOS

HOUSES

1 MO AGO

54%

66%

2 MO AGO

62%

66%

1 YR AGO

62%

45%

For more info on falling-rising home prices, scroll down this blog a bit further and check out "Oct, 2010 Foreclosures Down 4% from Sept, 2010", and also see further down, "Inventory of Homes For Sale Drops".

Cheers Until Next Month!  - Peg
Mary "Peg" Heying
REALTOR® - CA DRE License # 01726709
Prudential CA Realty
890 W Washington St.
San Diego, CA 92103
Cell:  (619) 301-8589

Posted via email from RealtorPeg

San Diego Coastal Area Median House Prices thru Oct '10

Greetings,

The latest in San Diego SOLD home prices through Oct, 2010.

 For HOUSES in the 18 different zip codes which I track, the median sold prices look like: 

Ø  Compared to 1 mo ago, 66% of our zips either went up in market value or stayed essentially the same (within +/-5% market value). Here, South Park / Golden Hill with an 18% increase on 12 houses sold in the most current month is virtually tied with University City at a 17% increase and also 12 houses sold in the most current month.

Ø  Compared to 2 mos ago, the market value of 66% are still either a higher value or stayed essentially the same (within +/-5%) as they were 2 mos ago. The leader in the 2 month category is again South Park / Golden Hill with a 15% increase. And, 45% of zips have shown an increase or stayed the same in market value for the past 2 mos straight.

Ø  Compared to 1 year ago, we have 45% of zips with a market value either higher in market value or essentially the same (within +/-5%) compared to 1 yr ago. Here we have one more time, South Park / Golden Hill leading the pack with a 35% increase and 12 houses sold in the most current month above market values of 1 yr ago.

To summarize:   The below chart gives you an excellent overview of San Diego by comparing the percentages of my tracked zip codes that either increased or held steady in home value:

OCT 2010

CONDOS

HOUSES

1 MO AGO

54%

66%

2 MO AGO

62%

66%

1 YR AGO

62%

45%

For more info on falling-rising home prices, scroll down this blog a bit further and check out "Oct, 2010 Foreclosures Down 4% from Sept, 2010", and also see further down, "Inventory of Homes For Sale Drops".

Cheers Until Next Month!  - Peg
Mary "Peg" Heying
REALTOR® - CA DRE License # 01726709
Prudential CA Realty
890 W Washington St.
San Diego, CA 92103
Cell:  (619) 301-8589

Posted via email from RealtorPeg

San Diego Clairemont Area Median House Prices thru Oct '10

Greetings,

The latest in San Diego SOLD home prices through Oct, 2010.

 For HOUSES in the 18 different zip codes which I track, the median sold prices look like: 

Ø  Compared to 1 mo ago, 66% of our zips either went up in market value or stayed essentially the same (within +/-5% market value). Here, South Park / Golden Hill with an 18% increase on 12 houses sold in the most current month is virtually tied with University City at a 17% increase and also 12 houses sold in the most current month.

Ø  Compared to 2 mos ago, the market value of 66% are still either a higher value or stayed essentially the same (within +/-5%) as they were 2 mos ago. The leader in the 2 month category is again South Park / Golden Hill with a 15% increase. And, 45% of zips have shown an increase or stayed the same in market value for the past 2 mos straight.

Ø  Compared to 1 year ago, we have 45% of zips with a market value either higher in market value or essentially the same (within +/-5%) compared to 1 yr ago. Here we have one more time, South Park / Golden Hill leading the pack with a 35% increase and 12 houses sold in the most current month above market values of 1 yr ago.

To summarize:   The below chart gives you an excellent overview of San Diego by comparing the percentages of my tracked zip codes that either increased or held steady in home value:

OCT 2010

CONDOS

HOUSES

1 MO AGO

54%

66%

2 MO AGO

62%

66%

1 YR AGO

62%

45%

For more info on falling-rising home prices, scroll down this blog a bit further and check out "Oct, 2010 Foreclosures Down 4% from Sept, 2010", and also see further down, "Inventory of Homes For Sale Drops".

Cheers Until Next Month!  - Peg
Mary "Peg" Heying
REALTOR® - CA DRE License # 01726709
Prudential CA Realty
890 W Washington St.
San Diego, CA 92103
Cell:  (619) 301-8589

Posted via email from RealtorPeg

San Diego Tierrasanta Area Median House Prices thru Oct '10

Greetings,

The latest in San Diego SOLD home prices through Oct, 2010.

 For HOUSES in the 18 different zip codes which I track, the median sold prices look like: 

Ø  Compared to 1 mo ago, 66% of our zips either went up in market value or stayed essentially the same (within +/-5% market value). Here, South Park / Golden Hill with an 18% increase on 12 houses sold in the most current month is virtually tied with University City at a 17% increase and also 12 houses sold in the most current month.

Ø  Compared to 2 mos ago, the market value of 66% are still either a higher value or stayed essentially the same (within +/-5%) as they were 2 mos ago. The leader in the 2 month category is again South Park / Golden Hill with a 15% increase. And, 45% of zips have shown an increase or stayed the same in market value for the past 2 mos straight.

Ø  Compared to 1 year ago, we have 45% of zips with a market value either higher in market value or essentially the same (within +/-5%) compared to 1 yr ago. Here we have one more time, South Park / Golden Hill leading the pack with a 35% increase and 12 houses sold in the most current month above market values of 1 yr ago.

To summarize:   The below chart gives you an excellent overview of San Diego by comparing the percentages of my tracked zip codes that either increased or held steady in home value:

OCT 2010

CONDOS

HOUSES

1 MO AGO

54%

66%

2 MO AGO

62%

66%

1 YR AGO

62%

45%

For more info on falling-rising home prices, scroll down this blog a bit further and check out "Oct, 2010 Foreclosures Down 4% from Sept, 2010", and also see further down, "Inventory of Homes For Sale Drops".

Cheers Until Next Month!  - Peg 
Mary "Peg" Heying
REALTOR® - CA DRE License # 01726709
Prudential CA Realty
890 W Washington St.
San Diego, CA 92103
Cell:  (619) 301-8589

Posted via email from RealtorPeg

Friday, November 19, 2010

Devil's Fart?

Did you know "Pumpernickel", the dark coarse sourdough bread that most people associate with Germany could mean "devil's fart"? Although some say it was named from a tale about Napoleon (or Napoleon's groom, or an anonymous Frenchman), who, while on a military campaign in the part of Europe now known as Germany, was given some pumpernickel bread to eat. The disdainful recipient of this loaf, declaring it unfit for human consumption, instead fed it to a horse named Nicol while stating either "C'est du pain pour Nicol" (i.e., "It is bread for Nicol") or "C'est bon pour Nicol" (i.e., "It is good for Nicol") — a disparagement somewhat similar to Samuel Johnson's definition of "oats" in his Dictionary of the English Language (1755) as "A grain, which in England is generally given to horses, but in Scotland appears to support the people." The German locals, apparently not offended (and also inexplicably lacking a word of their own for this type of bread) decided to adopt the spiteful phrase as a name for the dark loaf, rendering the French "pain pour Nicol" as "pumpernickel."

Here are a few reasons that the story can't be true. The word "pumpernickel" was part of the German language as a pejorative roughly equivalent to the modern English "jerk" over a century before Napoleon was born, and that it also appeared in English as a type of bread before the French emperor's birth.

The alternative origin of "pumpernickel" is quite a gas.  "Pumpern" was a New High German word similar in meaning to the English "fart" (so chosen because, like the word "achoo," it imitated the sound it described), and "Nickel" was a form of the name Nicholas, an appellation commonly associated with a goblin or devil (e.g., "Old Nick" is a familiar name for Satan).  Hence, pumpernickel is the "devil's fart," allegedly a reference to the bread's indigestible qualities and hence the effect it produced on those who consumed it.

Others believe the word "pumpern" refers to the sound produced by thumping on a loaf of pumpernickel, but that explanation is extremely unlikely.

Ernest Hemingway's favorite meal was raw onion sandwiches on buttered pumpernickel bread.

Posted via email from RealtorPeg

German Chocolate Cake?

An American Invented German Chocolate Cake!

German chocolate cake took its name from an American with the last name of "German." In 1852, Sam German developed a sweet baking bar for Baker's Chocolate Co. The product was named in honor of him: "Baker's German's Sweet Chocolate." In most recipes and products today, the apostrophe and the "s" have been dropped, fueling the assumption that the chocolate's origins are German. The first published recipe for German's chocolate cake recipe showed up in a Dallas newspaper in 1957 and came from a Texas homemaker. The resulting spike in German's Sweet Chocolate sales put General Foods (which then owned Baker's Chocolate) on alert; the company quickly sent copies of the recipe and photos of the cake to newspapers across the nation. Everywhere the recipe was published, food editors were swamped with requests for information on where to buy the chocolate. In a year, sales jumped 73%. Readers who missed the recipe asked that it be reprinted. In no time at all, German Chocolate Cake was on most every table!

Posted via email from RealtorPeg

Wednesday, November 17, 2010

San Diego County Mortgage Credit Certificate Program 20% Tax Credit!

Mortgage Credit Certificate Program

The San Diego Regional Mortgage Credit Certificate Program allows qualified first-time homebuyers to reduce their federal income tax by up to 20 percent of the annual interest paid on a mortgage loan. With less being paid in taxes, the homebuyer's net earnings increase, enabling him/her to more easily qualify for a mortgage loan. Purchasing property in designated areas increases the income eligibility and purchase price limits, as well as removes the first-time homebuyer requirement. An MCC may only be used to purchase single-family detached homes, condominiums, townhomes and manufactured homes on a permanent foundation.

Eligibility
The property to be purchased must be located within an unincorporated area of San Diego County, or in the cities of Carlsbad, Chula Vista, Coronado, El Cajon, Encinitas, Escondido, Imperial Beach, La Mesa, Lemon Grove, National City, Poway, San Marcos, Santee, or Vista. The cities of San Diego and Oceanside operate their own individual MCC programs.

 

MCC Income Eligibility Limits

Number of Persons

Non-Designated Area

Designated Area

1-2 Persons

$94,800

$113,780

3+ Persons

$109,020

$132,720

For more info including designated and non-designated areas, or, services for the city of San Diego, contact Peg at Prudential CA Realty, 619-301-8589, or realtorpeg@yahoo.com.

Posted via email from RealtorPeg

Tuesday, November 16, 2010

Jumbo Mortgages Thawing

Jumbo-Mortgage Market Thaws

Banks are starting to make "jumbo" mortgages again.

When the credit crisis hit more than two years ago, many banks cut back or stopped making loans for more-expensive homes. Now, smaller and regional lenders are issuing more new jumbo loans and doing more refinancings—as are some big banks that never stopped making them. If the trend continues, it could help bolster home sales in some wealthier areas.

In the second quarter of 2010, jumbo-mortgage lenders originated $18 billion in loans—a 20% increase from the first quarter. Jumbo lending still remains far below 2007 levels, according to Inside Mortgage Finance Publications Inc., an industry data provider.

Michal Czerwonka for The Wall Street Journal

Robert Flaxman of Laguna Beach, Calif., is refinancing his home's $5 million jumbo loan with the help of a mortgage specialist.

JUMBO
JUMBO

J.P. Morgan Chase & Co.'s Chase Home Lending unit increased its jumbo-mortgage volume by 146.2% in the first six months of this year over the same period a year earlier, and Wells Fargo & Co. by 47.5%, according to Inside Mortgage Finance. PHH Corp. of Mount Laurel, N.J., a mortgage originator and servicer, issued 64.6% more jumbos in that period.

"Overall lending for mortgages is up, and jumbos are up more," says Thomas A. Kelly, a Chase spokesman. "Part of it is that we have the capacity and we are making it available to our customers." But, he adds, "we are still using very disciplined underwriting and we want to make sure that you have an ability to repay the loan."

Jumbo mortgages are those that are too big to be bought by government-backed agencies such as Fannie Mae and Freddie Mac. The limits vary by region, though they generally are mortgages that exceed $417,000. In high-cost metro areas, including New York and San Francisco, jumbo loans are generally those that exceed $729,750. The limits can be even higher in Alaska and Hawaii.

Turning to Smaller Banks

Many jumbo borrowers are still finding it frustrating to get a loan. Some of them, encountering backlogs and processing delays at larger banks, are turning to smaller ones, such as Investors Bancorp Inc. in Short Hills, N.J. Peter Elsby, a senior loan officer at Investors Bancorp's mortgage unit, which operates in 16 states, says many national banks are taking two to four months to process a mortgage, while his bank can turn one around in 30 to 60 days. "Their turnaround time is just way too slow," he says of the big banks.

Borrowers seeking jumbo mortgages for condos or vacation properties also may be better off using a local lender or contacting a mortgage specialist, as many big banks are still making it very tough for those buyers to qualify or have drastically reduced their lending activity.

Robert Flaxman, a 54-year-old real-estate developer in Laguna Beach, Calif., says he is refinancing his $5 million mortgage, which has an interest rate that adjusts monthly. His new loan will be another adjustable-rate mortgage with a fixed interest rate in the 3.75% to 4% range for the first five or seven years, and adjusting annually thereafter.

A few years ago, Mr. Flaxman says, he could have gotten a jumbo mortgage from just about any big bank, but since the credit crisis he has had to go to private banks catering to high-net-worth clients. He is working with a specialist, Luxury Mortgage Corp., based in Stamford, Conn., and licensed in 19 states, because "they have a smorgasbord of options."

Real-estate professionals in areas that haven't been greatly affected by foreclosures say the somewhat improved availability of jumbo mortgages is helping revive sales of expensive homes.

"The jumbo market is starting to loosen up," says Candace Adams, president of Prudential Connecticut Realty, who says she noticed the change only in the past 60 days.

Ms. Adams says lenders in Fairfield County, Conn., which includes the affluent communities of Greenwich, Darien and Westport, have reduced down-payment requirements to 20% from 25%, and more lenders are vying for customers. Many buyers of homes worth more than $1.5 million are opting for adjustable-rate mortgages with a seven- or 10-year fixed rate as low as 3.5% that then adjusts annually, she says.

"In the third quarter of 2010, there was an increase of 27.4% in single-family home sales, a significant increase over last year," Ms. Adams says. Much of the boost came from price cuts and federal tax incentives that expired earlier this year, but the greater availability of jumbo loans—and so-called superjumbos, or loans of at least $1 million—also was a factor, she says.

In other parts of the country, such as the San Francisco Bay area, jumbo loans are still hard to get, weighing down sales, experts say. John Walsh, president of MDA DataQuick, a San Diego-based provider of real-property information, says the share of purchases in the high-priced San Francisco area financed with jumbo mortgages is still falling.

A Growing Demand

The banks credit greater borrower demand elsewhere on falling interest rates, which recently reached historic lows. The average jumbo rate through the week ended Oct. 29 was 5.11%, down from about 6.14% on Jan. 1, 2010, according to financial publishers HSH.com. And the spread between jumbo and ordinary loans, which had reached as much as 1.8 percentage points in December 2008, is now just 0.74 point.

The total volume of jumbo loans is way down from a few years ago. Jumbo mortgages constituted 5% of total mortgage originations in 2009 and 2010, versus 20% from about 2004 to 2007. Historically, they comprise about 18% of mortgages issued, says Guy Cecala, CEO of Inside Mortgage Finance.

Underwriting continues to be strict: Borrowers still need excellent credit profiles and must provide complete documentation and verification of income, unlike several years ago. Down payments of 20% to 40% typically are required.

Tim McLaughlin, senior vice president of capital markets for Weichert Financial Services in Morris Plains, N.J., says he doesn't expect the traditional jumbo-mortgage market to return to normal until institutions can get back to developing and selling bonds based on the mortgages in the financial markets, instead of simply holding the mortgages in their portfolios. That could take another year or more, Mr. McLaughlin says.

"We need investors to be confident in the assets they are purchasing," he says.

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