Paul Jackson of Housingwire alerted me today to his story about Freddie Mac entering the Jumbo market, which should give Fannie a bit of competition here. As Paul points out, with some help from Tanta at Calculated Risk, Freddie has the potential to add some market share here since it will be able to use its LoanProspector AU system to underwrite Jumbo deals.
There can be no comparison between an investor underwriting deals via an automated system and one doing it by hand, especially when the investors have little previous experience buying Jumbo loans.
Freddie will also be looking to buy some additional products, including cash-out refis. That could be a one-two punch that allows the smaller GSE to gain some ground on its larger competitor.
Thanks for the tip, Paul.