An underwriter is reviewing a portfolio strategy that targets jumbo non-conforming loans exclusively. Which is the primary portfolio-level concern with this approach?
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A
Reduced yield compared to conforming loan portfolios
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B
Inability to sell or securitize loans through GSE channels, limiting liquidity
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C
Higher prepayment speeds compared to conforming loans
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D
Stricter appraisal requirements mandated by Fannie Mae