For the US, what percentage of Jumbo Mortgages (>300,700)are
Adjustable Rate Mortgages/Hybrid ARMS and what is the dollar amount of
the Jumbo mortgage Hybrid/ARM sector?

The MBAA says that about 20% of all Mortgages (fixed and adjustable)
are ARMs or Hybrid ARMs but I think that the
percentage of Jumbo ARMs would be more than 20% by the nature of the
borrower and the benefits of an ARM product.

Thank you.

Hello and thank you for your question.

You're right--Jumbo ARMs have been a much larger segment of the market
than MBAA claims.  The available data is from the 1990 US census,
however, and there may have been changes in the lending profile as
mortgage rates have changed.

The data is summarized in a Freddie Mac report, which cites the US
Census Bureau's RESIDENTIAL FINANCE SURVEY as authority:
"Of single-family conforming loans originated during 1989-91, 70
percent were fixed-rate, 19 percent were ARMs, and 11 percent were
other products (primarily balloons). In contrast, the product choice
in the jumbo market was 42 percent fixed-rate, 49 percent ARM, and 9
percent other."
Freddie Mac
http://www.freddiemac.com/corporate/reports/priv-rpt/chap7.htm
citing
http://www.census.gov/mp/www/pub/cen/mscen04a.html

You can access the RESIDENTIAL FINANCE SURVEY directly--it is a
975-page, 10 megabyte Adobe Acrobat file which can be downloaded for
free at
http://www.census.gov/prod/3/98pubs/CH-4-1.PDF

You'll want to look especially at Table 3a on Page 56 of the report
which describes the mortgage loans of each type and their dollar
volume.

Search terms used:
nonconforming mortgage arm 
mortgage data nonconforming segment "adjustable rate"
Residential Finance Survey of the 1990 Census of Housing

If you find any of the above unclear, please let me know.  I would
appreciate it if you would hold off on rating this answer until I have
an opportunity to reply.

Sincerely,
richard-ga

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Request for Answer Clarification by ambrosio-ga on 14 Oct 2002 08:49 PDT

Thank you very much for such a quick response.

This corroborates my general thesis yet is dated. Do you know of any
more recent data that perhaps would be more relevant.

Again, thank you very much for your response.

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Clarification of Answer by richard-ga on 14 Oct 2002 15:04 PDT

Hello again:

MBAA has published a chart of "Adjustable-Rate Mortgage Market Share"
through the 4th quarter of 2000 but it doesn't distinguish between
conventional and jumbo mortgages.  Except for a spike around 1994 it's
fairly stable in the 20% to 25% range.  If we take that as a weighted
average of the conventional and jumbo market, and given what we saw in
the 1990 census, it's reasonable to assume that the conventional
component held around 20% adjustable and the jumbo component held
around 50% adjustable through most of the decade.
http://www.mbaa.org/present/2000/duncan_1000.pdf

I hope this helps!
richard-ga

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Clarification of Answer by richard-ga on 14 Oct 2002 16:02 PDT

The chart is on page 17 of that .pdf file

-R

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Clarification of Answer by richard-ga on 14 Oct 2002 16:06 PDT

That chart is limited to conventional home loan mortgages--it's not a
weighted average.  Sorry.

But my point is the same--since the conventional mortgages were stable
at 20-25% ARM, it's reasonable to assume that the jumbo mortgagegs
also remained stable at their 50% ARM component.

-R

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Request for Answer Clarification by ambrosio-ga on 14 Oct 2002 16:26 PDT

Thanks a lot. I have been researching this for a while: it is as
comforting to know that hard and fast data is that easy to come by. I
was starting to doubt my researching.

Thanks.

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Clarification of Answer by richard-ga on 14 Oct 2002 20:09 PDT

Thank you for the generous rating
-R