Mortgage bankers are making money hand-over-fist on their new originations these days, and profit margins continue to be fat thanks to a low cost of funds and the ability to heap on all sorts of fees.

Just how good are things in the industry? Answer: Commercial banks are opting to hold jumbo loans in portfolio because they deem these mortgages (where 20% minimum equity is the norm) so safe that there’s no way a default will occur.

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