Origination Report: Jumbo Mortgage, March 2022

A byproduct of COVID-19 has been skyrocketing housing prices across the U.S. as borrowers have flocked into new homes, motivated by historically low interest rates. With home prices surging, demand for jumbo loans soared 14% YoY in 2021. As part of our commitment to providing market transparency, dv01 is publishing market intelligence about the jumbo mortgage sector through our new monthly Insights series: Jumbo Mortgage Origination.

This report leverages the ATTOM dataset that contains public county-disclosure data to shed light on origination trends. The use of external data allows us to gain insight into the broader market, and not just securitized loans. Some quick insights:

• Increased conforming loan limits impact jumbo originations. Historically, the market loses $1.5 billion in January due to raised limits; in 2022, $5 billion was lost (page 2).

• When analyzing originations by loan balance, the most aggressive growth has been in balances between $1 million and $1.5 million (page 3).