A company that aggregates and securitizes jumbo mortgages has more than doubled its jumbo loan limit on a government sponsored enterprise program.
Since the financial crisis, Redwood Trust Inc. has been one of the few companies to acquire non-agency jumbo mortgages.
In addition the Mill Valley, California-based company has also been among the handful of firms to issue non-agency residential mortgage-backed securities since the secondary mortgage market collapsed during the financial crisis.
One of Redwood’s jumbo products is the Mortgage Partners Finance Direct product which is offered by Redwood to members of the Federal Home Loan Bank system.
The single-family limit on the FHLB production
is currently set at $729,750.
But an announcement
Monday said that the limit is being lifted to $1.5 million.
The MPF direct product, which is operated by the FHLB Chicago, is available through the FHLBs in Atlanta, Boston, Chicago and San Francisco.
“MPF Direct was designed to provide additional mortgage liquidity to members of the Federal Home Loan Bank System, and the increase in the loan limit further promotes the intended benefits to the members without adding credit or interest rate risk to their business,” Redwood Trust President Brett Nicholas said in the statement.
The increased jumbo limit on MPF loans is expected to go live in the third quarter.
