As it continues to get cold here in Connecticut the mortgage melt down continues with over 200 major mortgage lenders now closed and now the big boys not only have tightened guidelines but have started to impose a hit to pricing which increases the rate or costs of a mortgage to borrowers!

The way I see it the consumer once again is paying for the mistakes of loose lending, too many lenders overlooked things and also allowed people who had no business to get a mortgage obtain a mortgage. With all the lenders and investors taking hits in their pockets these lenders/investors have started to impose a increase in there loan costs which is again passed on to the borrower so in effect the borrowers are now going to pay for their mistakes!

Today started the first round of increases from Fannie and Freddie and here is the e-mail we received: 

The morning rate sheets are being re-published to the website with all the applicable adjustments.  Please refer to the Secondary Marketing Announcement issued Friday.  Most importantly, there is a .250 adjustment to all conforming programs as the Agencies (FNMA/FHLMC) have adjusted their loan delivery pricing for all lenders.