An article in the Wall Street Journal points out that, "Jumbo loan borrowers are among the trickiest for a bond investor to hold. The borrowers are typically the slowest to refinance their debt as mortgage rates increase, which means mortgages can remain in the bonds longer than anticipated. That leaves investors with a bond filled with longer-term assets that pay lower rates than newer bonds, which push down the value of the debt. Investors also worry they will have trouble exercising their right to demand lenders repurchase bad mortgages, a practice that at the heart of legal fights over boom-era loans. And the small size of the new-issue jumbo bond market makes it harder to trade the issues, discouraging some investors." To complicate things, earlier this week Franklin American's correspondent channel stopped originating 30-yr fixed jumbo loans, and investors were roiled when PennyMac revised disclosures about its loans midway through the process of marketing the debt.