Jumbo Loan Program Kicked Off in California

Bank of Internet USA in San Diego is offering a loan portfolio program that few banks of its size are willing to hold: jumbo and super-jumbo mortgages.

The $1.4 billion-asset thrift subsidiary of BofI Holding Inc. has launched a jumbo loan portfolio program specifically for California.

The parent company said Thursday that it is targeting the state's "affluent, sophisticated home mortgage borrower."

California has had its share of banking problems after the housing market collapsed; 28 banks have failed in the state since the start of 2008.

More than 36% of California's 287 insured institutions were unprofitable as of March 31, according to the Federal Deposit Insurance Corp.

The average percentage of noncurrent loans to total loans was 4.83% in the state during the same period.

The online-focused Bank of Internet USA has outpaced the state's performance with net income of $4.2 million in the first quarter and 1.81% of its loans noncurrent as of March 31.

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Community banking California
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