Since home prices have continued to fall, Freddie Mac has determined that they are at a heightened risk of many more mortgage defaults and claims. They report that there may be even more of a housing price decrease in 2009. In light of this news they have increased several fees and added new ones. One of their new fees is a 0.75% fee of the loan amount on certain condominium mortgages when the loan equals more than 75% of the estimated condominium value. Their increases include fees on the following types of mortgages:
- Loans that let borrowers pay interest in the primary years and defer principal payments
- Refinance loans that allow the borrower to cash out some of their home equity
- Loans with certain combinations of low credit scores and down payments
- Condominium mortgages
The National Association of Realtors and the National Association of Home Builders have protested these increases, as they claim that these additional costs are discouraging potential home buyers and people considering refinancing their loans.
