mortgage rate went crazy

--Wells Fargo & Co., the nation's second-largest home lender, is charging 8% for a prime jumbo 30-year fixed-rate loan that carried a 6 7/8% rate late last week. (Jumbo loans are those too large to be sold to government-sponsored mortgage investors Fannie Mae and Freddie Mac.) --Many mortgage lenders are focusing on loans to borrowers who are willing to document their income, can make a down payment of at least 5% and have a history of paying bills on time. --Alt-A loans accounted for about 13% of U.S. home loans granted last year, according to Inside Mortgage Finance, and subprime loans about 20%. Industry executives have said subprime lending is likely to shrink by more than 50% this year, and now much of the Alt-A market is vanishing too. --Most lenders have limited capacity to retain loans as long-term investments and rely on an ability to sell most of them to investors, mainly in the form of mortgage-backed securities.