Seem to be doing fine.
Mr. Blackwell, the Wells Fargo executive, said the current inversion between jumbo and conforming rates could last “for the foreseeable future” so long as banks’ cost of funds stays at its current level and loan demand doesn’t rise sharply.
Could the spread be explained by differences in how jumbo mortgages are underwritten versus how guaranteed loans are underwritten? Perhaps the jumbo mortgages have greater down payment requirements, more borrower reserves, higher credit scores, etc.