Tax Cut Extension Now Officially Raising Mortgage Rates

According to a report in the Mortgage News Daily, As part of the temporary resolution to the recent battle over the Tax Cut Extension that took place in the last weeks of December, Congress decided that mortgage borrowers should foot part of the bill. Technically, Congress increased the "Guaranty Fees" that Fannie Mae and Freddie Mac charge to lenders that securitize MBS (Mortgage-Backed-Securities) with the Agencies, but ultimately, this cost must either be absorbed by lenders, passed on to consumers, or some combination of the two.

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GSE Guarantee Fee Hike Coming April 1

According to a report in the National Mortgage News, The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to implement a congressionally mandated increase in their loan guarantee fees on April 1.

For more visit: http://www.nationalmortgagenews.com/dailybriefing/2010_506/gse-guarantee-fee-hike-1028074-1.html#. PrivoCorp is a contract mortgage processing company, and we keep track of movements in fees like these and try to correlate fees increase/decrease to processing volumes

Realtors Report Signals Higher Sales in Coming Months

According to the report in National Mortgage News, A leading indicator of future home sales jumped 7.3% in the November to its highest level in over 19 months, according to the National Association of Realtors.

For more: http://www.nationalmortgagenews.com/dailybriefing/2010_506/realtors-report-signals-higher-sales-1028071-1.html

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