April 23, 2012

On April 17, 2012, the Federal Housing Finance Agency (FHFA) announced a new directive as part of FHFA’s continued servicing alignment initiative that directs Fannie Mae and Freddie Mac to align their guidelines for servicing delinquent mortgages they own or guarantee.  The new directive requires that servicers of Fannie and Freddie loans:

  • Review and respond to borrower requests for short sales within 30 days after receipt of a short sale offer and a complete borrower request.
  • If the review is still under way after 30 days, give the borrower weekly status updates.  (This allows more time where necessary, such as where subordinate lenders and/or mortgage insurance is involved.)
  • Advise the borrower of the final decision within 60 days after receipt of a short sale offer and a complete borrower request.

The new timelines apply both to HAFA loans and to other short sales approved by Fannie Mae and Freddie Mac.  Additional enhancements are planned by the end of 2012 addressing borrower eligibility, simplifying documentation, valuing property, payments to subordinate lien holders, and mortgage insurance.

FHFA Announcementpdf

Freddie Mac Bulletinpdf

Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.
Advertisement