From a plugged-in tipster late last week:
Just got an email from my mortgage broker…countrywide is now requiring 25% down payments on jumbo mortgages in the bay area.
No word on whether or not that’s both wholesale and retail. Can anybody confirm?
UPDATE: We’ll consider it confirmed. And in a related reader report:
I spoke to a reputable agent at length over the weekend about the mortgage market. He said the main players left still writing San Francisco mortgages were the big money center banks (citi, BofA, etc). He said most are requiring 20% down these days. He spoke of one client who did a 10/10, but the second 10% was guaranteed by the guy’s employer (~1.2m purchase price). It is pretty amazing that someone “in the market” for 1m+ home can barely scrape together $100K.
He also said the total debt/income ratio was going down from a previous 65% (wow!) to something like 45-50%. He said the bank tightening really only kicked in heavily in the last week or two which implies the market probably is not reflecting this yet.