Don’t exaggerate the effect of the 417K threshold.
The jumbo mortgage market has not shut down, not even close. I know from personal experience that local credit unions, across the country, are still making jumbo loans at good rates, at least for prime borrowers. Subprime jumbo may be a different story.
Every crisis is an opportunity. The changed climate in jumbo loans is an opportunity for well-capitalized lenders to make higher profits. And the capital still exists out there, it’s just a bit more risk-averse so it demands a bit higher reward, that’s all.
