In the past week, the National Association of Realtors has slammed both Fannie Mae for imposing new fees and bloggers for creating misperceptions about required housing down payments.
In a letter sent to the Federal Housing Finance Agency, the trade group argued that fees set to be added to certain types of mortgages as of April 1 will be passed onto consumers.
The fees in question will make it costlier for borrowers to get an interest-only option on their loans, and make it more expensive for those looking to buy a condo or a co-op.
The Wall Street Journal cited one fairly typical example that would raise associated costs by two percent, though a Fannie Mae spokesman said the fees are targeted at the highest-risk loans.
Which begs the question, why offer such loans to begin with? But I suppose that’s a completely different kettle of fish.
In their constant and increasingly desperate fight to promote homeownership, the NAR also sent out a media advisory in an attempt to clarify down payment requirements.
While noting that the “blog world is abuzz with misperceptions,” the group said not all borrowers need to put down 20 percent to purchase a home, and added that even in a declining market a five to 10 percent down payment is required.
NAR also took time to promote FHA lending, which requires only a 3.5 percent down payment so long as certain requirements are met.
In other words, you can still buy, buy, buy.