Jumbo Lenders See Signs of Fraud.

It's generally assumed in housing finance circles that the U.S. likely will not experience a housing price "bubble," but some jumbo and "superjumbo" lenders are quietly tightening their underwriting guidelines.

One high-end lender, requesting anonymity, said he is starting to see a "high incidence" of fraud on no- documentation and low-documentation jumbos.

This lender said he recently increased his firm's underwriting guidelines, requiring two appraisals, with two reviews, and a close look at recent "comps."

"We are really scrutinizing everything," he said, adding that other lenders are doing so as well, "but they may not be advertising the fact."

One lender that has tightened its jumbo/superjumbo guidelines is Aurora Loan Services of Colorado, he said. However, ALS officials could not be reached for comment about the matter. Aurora is owned, in part, by Lehman Brothers.

Other jumbo and superjumbo lenders contacted by National Mortgage News said they have not made any major underwriting changes, but are being careful nonetheless.

Ginny Ferguson, a loan broker who runs her own shop in California, said she has not seen any radical changes from her wholesale funders, but ...