Prospect Mortgage Begins Issuing Jumbo Loans

Prospect Mortgage said it has started offering prime Jumbo loans with balances of up to $2 million. It plans to sell these loans to firms aiming to tap the private-label MBS market.

“Although Congress has extended the GSE’s upper-end conforming limit of $729,750 until Sept. 30 of this year, that ceiling is only available for a limited number of high-cost areas,” said Ron Bergum, Prospect’s CEO. “We are focused on producing fully documented prime loans through well-qualified buyers who need Jumbo mortgages in markets with a $417,000 conforming limit, and then offering those loans to investment firms that are first movers back into jumbo securitization.”