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WASHINGTON, D.C. — America’s Community Bankers has formally asked the Department of Housing and Urban Development and the Office of Federal Housing Enterprise Oversight to thoroughly review the details, policy implications and propriety of Freddie Mac’s involvement with HomeAdvisor Technologies, Inc., a company controlled by Microsoft.

Earlier this year, Freddie entered into a financial arrangement with HTI to provide its automated underwriting system for use in a consumer Internet mortgage loan program. Other strategic partners with HTI are five large lenders.

ACB questioned whether Freddie’s involvement is consistent with the purpose for which it was chartered. The charters of Freddie and Fannie Mae do not allow the companies to originate mortgage loans. ACB specifically urged the agencies to examine the propriety of automated underwriting technology being used as a tool for primary market originations. “The issue of unfair monopolization of this credit review process by federally-advantaged entities is one that should be considered,” ACB said.

ACB asked both HUD and OFHEO to examine the advantages larger volume/seller servicers dealing with both Freddie and Fannie may have over other lenders. Smaller lenders have been excluded from partnering in the HTI program. ACB asked HUD to also examine the mission appropriateness of Freddie’s arrangement and asked OFHEO to analyze safety and soundness issues. Both are regulators of Freddie and Fannie.