The wealthiest, most-reliable mortgage borrowers in the U.S. are hearing an unfamiliar word from lenders: No.
The global pandemic has flipped the mortgage market upside down, turning the industry’s most-valued customers into risky bets. When the rich lose income and stop paying, costs for lenders are magnified because the loans -- known as jumbos since they are bigger than most conventional mortgages -- don’t have the government to backstop losses.
“Before this crisis hit us, jumbo loans were pretty attractive,”