Jumbo loans are inherently risky due to their size. Fannie Mae doesn't support them and only in very limited cases; homes in LA, SF, NYC.
Since the banks can't use those federal services (Fannie Mae) they have to carry that risk.
Since the banks can't use those federal services (Fannie Mae) they have to carry that risk.
Here's the loan limit map for 2022: https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-L... It's more than just three cities, including all of northern Virginia, and there's gradations.