Freddie Mac's decision to hike its delivery fees on higher LTV loans is raising hackles at the National Association of Realtors which has been calling on the GSEs to ease up on their "excessively tight" credit policies.
"This is another example of the pendulum swinging the wrong way," said Jeff Lischer, NAR managing director for regulatory policy.
He noted that Freddie's book of business for the past two years is extremely sound with very low default rates. Raising fees looks like a "cross subsidy" to cover losses on loans made during the 2006-2008 period, he said.
Freddie issued a bulletin on Nov. 22 with the changes to its delivery fees. The GSE said the fee "increases will have a nominal effect on consumer affordability."
But Lischer said it is "counter-productive" because it will take some good borrowers out of the market, reduce demand and delay a recovery in the housing market.
At its annual convention in early November, NAR adopted a policy statement that calls on Freddie, Fannie Mae and the Federal Housing Administration to reassess their credit policies so more qualified homebuyers can obtain mortgages.
Easing these tight underwriting standards will "not only help individual, well-qualified potential borrowers, but also the entire housing market which currently suffers from an excess supply of housing," the NAR credit policy says.
