Most of the people who actually own your mortgage also want you to stay in your house, preferring a mortgage reduction that you keep paying instead of the total loss of a foreclosure.
This is why many new buildings have preferred lenders and mortgage brokers, Mr. Maundrell said.
The government seized the mortgage finance companies over the weekend in the form of a conservatorship, promising to buy the companies' preferred stock, buy mortgage-backed securities from their portfolios and provide a lending facility.
Jeffrey Appel, a senior vice president and the director of new development financing for the Preferred Empire Mortgage Company, said most banks still made loans for jumbo mortgages, but under stricter guidelines.
For a jumbo loan of $418,000 from the same lender, the rate would rise to 7percentt, said Marc Schwaber, president of Preferred Empire Mortgage, a Manhattan-based brokerage.
Jeffrey Appel, director of new development financing at the Preferred Empire Mortgage Company, says he has seen buyers who have already made down payments on apartments this expensive, who are now having trouble setting mortgage rates.
Jeffrey Appel, a senior vice president and the director of new development financing at the Preferred Empire Mortgage Company, a brokerage based in New York, said that he had seen a 20percentt increase in multi-million-mortgages in Manhattan in the past year.
"Almost all of us make more money when they make more money," said Jeffrey Appell, a senior vice president at the Preferred Empire Mortgage Company, who moderated the panel, to laughter and applause.
