Last week news broke regarding so-called jumbo loans, mortgages on the most expensive homes (and mortgages that have been difficult to refinance). Reports the San Francisco Chronicle: "Major banks are heading into the jumbo segment, originating big loans at affordable rates - not for Wall Street bond traders but for their own investment portfolios. Bank of America, the country's largest mortgage lender, is rolling out a large program to finance jumbo loans between roughly $730,000 and $1.5 million, with fixed 30-year rates starting in the upper 5 percent range. The loans will be available through the bank's retail network and also through its Countrywide Home Loans subsidiary. After April 27, Countrywide will be rebranded -- shedding the name it has had since 1969 -- and morph into Bank of America Home Loans. Bank of America acquired Countrywide, once one of the biggest subprime lenders, last year." [SF Gate]
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