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Freddie Mac urges less fees for home loans.

Freddie Mac, the second largest mortgage finance company in the U.S., urged lenders to limit fees for borrowers so they could benefit from President Barack Obama's housing stimulus plan.

Freddie Mac, which is controlled by the U.S. government, is looking to "align" itself with the President's initiative to boost home loan lending.

"We … encourage you to the maximum extent possible to limit extra fees and charges so that more borrowers can benefit from this offering, which will help stimulate the economy and reduce the potential that these homeowners will need further assistance," wrote Don Bisenius, Freddie Mac's senior vice president for the firm's single-family guaranty business, according to a letter obtained by Reuters.

Bisenius also reiterated support for the company's policy to only allow refinancing through homeowners' current lenders since they have records that this policy could also help avoid foreclosure rescue scam or "hidden" fees, the letter stated.

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Publication:International Business Times - US ed.
Article Type:Brief article
Date:Mar 13, 2009
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