Investors View of Mortgage Product

Conforming (Agency)

  • Highly standardized to facilitate securitization
  • Agencies specify guidelines
  • Loan to property value < 80% unless insured
  • Prime loans to customers of high credit quality
  • Size limitations on individual loans (< $322,000)

Non-conforming (includes many types)

  • Private securitization vehicles ("private-label")
  • Jumbo mortgages (principal exceeds conforming limit)
  • Sub-prime: borrowers ineligible for conforming loans
  • Hybrid products

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