Founder and president Robert Cohan offers his commentary on the secondary market, jumbo loans and more in this article featured on NationalMortgageNews.com.
“On the secondary market side I see confidence coming back as home values across the country start to bottom out and banks are starting to feel more comfortable with people’s equity in their homes,” Robert Cohan, president of Beverly Hills, Calif.-based mortgage banker Carlyle Financial, told this publication.
Cohan, who estimates about 80% of his company’s volume is jumbo, said the super-low Treasury yields those bonds have hit recently in the market also are a plus for the sector because they make jumbo mortgage-backed securities yields look attractive, drawing investors back to the market.
In part because of the housing market’s protracted recovery, borrowers continue to prefer relatively longer-term seven- and 10-year hybrid adjustable-rate mortgages in the ARM-dominated jumbo market, Cohan said.
All this is “making the secondary market look at MBS, especially on the jumbo side, as something that makes sense,” he said.
The rest of the article may be found here.