Perspectives On GSE Conforming Loan Limits
Redwood Trust has continuously led the private sector resurgence in housing finance, issuing the first post-crisis securitization in 2010 and the first securitization backed by residential loans originated since the onset of the COVID-19 pandemic in 2020. Each year, we adapt to changes in GSE conforming loan limits and continue innovating to address the needs of both GSE eligible borrowers and those not eligible for, or well-served by, government-sponsored loan programs. In particular, we have credit enhanced more securitizations of high balance “jumbo” residential loans than any issuer in the country, and we specialize in underwriting the unique borrower profiles and properties backing these loans.
A few years ago, we published a presentation that provided perspectives on private capital in the mortgage market, providing evidence at the time that policymakers focused on affordable homeownership no longer need to subsidize high-cost mortgages, as the private sector has consistently offered similar if not more competitive rates to conforming mortgages for a number of years with substantial liquidity. Reflecting on the significant growth of the private sector since that time, this whitepaper offers commentary on the record conforming loan limit increases for 2022.