What Are Portfolio Loans?

Spend enough time in the mortgage industry and you will start shaking your head in frustration. For instance, what are portfolio loans? Portfolio loans are simply a niche of jumbo loans. Jumbo loans are loans for amount above what the government backers, HUD, will cover. In short, uninsured loans. Regardless, most lenders sell the loans they write on the secondary investment market. Some, however, they will keep. The jumbo loans that they keep are called portfolio loans, because they remain in the portfolio of loans the bank will process.