Jumbo Loans Push Into Non-QM, HELOC Securities

Jumbo loans, typically associated with borrowers seeking mortgages above conventional market limits, are becoming a more visible component of non-qualified mortgage and home equity line of credit securitizations. Their expansion matters because larger balances can increase concentration risk within loan pools, while exposing investors to different default and refinancing behavior than securities backed by smaller mortgages.

Bank of America Securities said loans with outstanding balances above $1 million are increasingly common in non-QM and HELOC securities. Its research found that higher loan balances generally correlate with higher default rates and faster prepayment speeds, two factors that can alter the timing and certainty of investor returns. As of Aug. 5, 2026, the event information provided did not specify the report’s publication date.