By Annamaria Andriotis | The Wall Street Journal
Wealthy home buyers signed up for these loans in droves last year because of their low rates and flexible repayment options. The total dollar amount of originated private jumbo mortgages—which exceed $417,000 in most parts of the country and $625,500 in pricey housing markets such as New York and San Francisco—was on track to be the highest since 2007.
But the jumbo-mortgage landscape is shifting this year. New mortgage rules from the Consumer Financial Protection Bureau, which go into effect on Jan. 10, could limit choices. Other regulatory actions are also expected to kick in that could make credit access on the high end more expensive.
Despite the changes, there is a silver lining for wealthy buyers: More lenders are competing for their attention, which means that rates on jumbo mortgages could rise at a slower pace than other loans. Lenders could also require smaller down payments.
Here are five changes to expect in 2014:
