Lenders have been rushing to originate and close adjustable-rate Veterans Administration mortgages for the last few weeks, and overall originations in the sector figure to show a bulge for the period.

The reason: Congress seems determined, for budgetary purposes, not to renew the ARMs program, which expired over the weekend. That in turn will mean a sharp drop in the supply of Ginnie Mae adjustables for the secondary market, since a quarter to a third of the loans going into Ginnie Mae adjustables are Veterans Administration mortgages.

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