Redwood Trust has announced that it recently sold a $222 million bond backed by jumbo mortgages.

Why do we care? Because since sometime in late, 2007, the jumbo market has been largely seized, with liquidity limited only to what could be sold to Fannie Mae and Freddie Mac.  But those two are limited to mortgages of less than $730,000, which means that lending liquidity for the so-called “jumbo product” has ben almost non-existent.  With median home prices in Marin County (usually) well above that amount, this has meant that financing for a significant chunk of the Marin market has been scarce as well.

Hopefully, this news is a harbinger of good things to come in the upper end of the Marin and other Bay Area markets.

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