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Government Fees Push Rates Up; Met Life Closes Doors

We received numerous notices from various lenders yesterday, warning us that rates will climb in coming weeks. This is because Fannie and Freddie are increasing their fees to pay for the recently passed payroll tax cut (as we mentioned yesterday).

We expect rates to increase by 1/8 to 1/4 of a percent, with the full effect to be felt by early February at the latest. This could be offset by a further decline in rates overall, but we are not counting on it. Hence, we are locking feverishly.

Met Life is closing down, and taking a $100 million write-off (they were unable to find a buyer). This is a great indication of just how tough our business is right now. This is also proof of why it is very dangerous to rely on a single lender. Fortunately, we have 40 other lenders to fill the void left by Met Life.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646