Mortgage bankers funded $26.6 billion of Jumbo loans during the third quarter of 2011, a handsome 30% gain from the same period a year earlier, according to new survey figures compiled by ASR sister publication National Mortgage News (NMN) and the Quarterly Data Report.

What makes the gain so impressive is that total industry-wide fundings fell 20% in 3Q11 compared to the third quarter of 2010.

According to interviews conducted by NMN over the past few weeks banks that are Jumbo funders continue to hold these nonconforming loans in portfolio instead of selling them into the secondary market.

Chase, the mortgage division of JPMorgan Chase, ranked first among all Jumbo producers in the third quarter, originating $2.78 billion, edging out the number two ranked firm, Bank of America ($2.75 billion.)  Wells Fargo & Co., declined to provide a jumbo volume number, but chances are its fundings probably were larger than Chase's.

Wells, like Chase, tends to keep its Jumbo loans in portfolio.

Although JPM ranked first, its Jumbo fundings were down slightly from the year ago quarter. B of A's rose 27%.

PHH Mortgage ranked third among jumbo producers with $2.74 billion, a 31% increase from 3Q 2010. PHH sells some of its production to mortgage REIT Redwood Trust, Mill Valley, Calif.

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