fat_lazy, you're correct jumbo loans aren't going to "vanish"..I don't think anyone is saying that, but demand is going to contract by probably 95+% to a trickle. This will virtually halt activity in the region, infact that is what is happening before our eyes right now.

I guess my vision is warped. Out of all the people I know, I can only think of 1 couple that might not qualify for a jumbo. But then again, most of the people I know have already bought and aren't really looking to buy again.