I applaud First Internet Bank of Indiana in entering the market. Let us hope that many more banks enter the market, as FIB is not very large in assets.

New jumbo product has the most conservative underwriting in 30 years – full documentation, in some cases 2 appraisals and 70-75 CLTV (ie 25-30% downapyment). Having the larger downpayment required keeps many people from qualifying for new loans or refinancing.

On refi's if the house value has fallen, you have to come up with cash out of pocket for a refi. Also, many jumbos have HELOCs (Home Equity Lines of Credit) which would have to be paid off to refinance. If you can borrow money on your HELOC at 2,.75% and are afraid of losing your job, many are reluctant to giving up the HELOC just to refi and have a lower monthly payment.

Bill Coppedge http://mortgagenewsclips.com/ and http://billcoppedge.com/