On the heels of the first Jumbo mortgage securitization since the crisis, Citigroup is cranking up originations of such loans to meet resurgent demand from borrowers and investors.
"We're finding that the demand for Jumbo loans is becoming very strong, particularly in New York and California," said Sanjiv Das, the chief executive of the company's CitiMortgage unit. "In fact, it is a priority for us … to provide Jumbo loans through our retail products [business] right now." As the originator and underwriter in last month's securitization, Citi learned firsthand that such loans are now in demand in the capital markets. Investors put in six times as many orders as the $238 million of bonds.