{"id":636,"date":"2012-04-17T06:19:10","date_gmt":"2012-04-17T14:19:10","guid":{"rendered":"http:\/\/www.jerrybice.com\/wordpress\/?p=636"},"modified":"2012-04-17T06:19:10","modified_gmt":"2012-04-17T14:19:10","slug":"fannie-and-freddie-set-timeline-requirements-for-short-sales","status":"publish","type":"post","link":"https:\/\/www.jerrybice.com\/wordpress\/fannie-and-freddie-set-timeline-requirements-for-short-sales\/","title":{"rendered":"Fannie and Freddie Set Timeline Requirements for Short Sales"},"content":{"rendered":"

BY: CARRIE BAY<\/h2>\n
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Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by\u00c2\u00a0Fannie Mae<\/a>\u00c2\u00a0and\u00c2\u00a0Freddie Mac<\/a>\u00c2\u00a0should expect to receive a decision on a short sale offer within 30-60 days.<\/p>\n

\"\"<\/p>\n

The GSEs issued\u00c2\u00a0new guidelines Tuesday<\/a>\u00c2\u00a0that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to the short sale process and expedite decisions related to these pre-foreclosure sales.<\/p>\n

Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes occupied and helps to maintain stable communities, according to the\u00c2\u00a0Federal Housing Finance Agency<\/a>\u00c2\u00a0(FHFA).<\/p>\n

Addressing real estate practitioners\u00e2\u20ac\u2122 No. 1 complaint about short sales,\u00c2\u00a0FHFA\u00c2\u00a0directed Fannie Mae and Freddie Mac to establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions.<\/p>\n

The GSEs\u00e2\u20ac\u2122 new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies\u00e2\u20ac\u2122 traditional short sale programs or a completed Borrower Response Package (BRP) requesting short sale consideration, whether it\u00e2\u20ac\u2122s through the federal government\u00e2\u20ac\u2122s\u00c2\u00a0Home Affordable Foreclosure Alternative<\/a>\u00c2\u00a0(HAFA) program or a\u00c2\u00a0GSE\u00c2\u00a0program.<\/p>\n<\/div>\n

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If more than 30 days are needed, servicers must provide the borrower with weekly status updates and come to a decision no later than 60 days from the date the\u00c2\u00a0BRP\u00c2\u00a0or offer was received.<\/p>\n

According to the GSEs, this 30-day add-on will provide some leeway for servicers who may need more time to obtain a broker price opinion (BPO) or a private mortgage insurer\u00e2\u20ac\u2122s approval for a short sale. All decisions must be made within 60 days.<\/p>\n

In the event a servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower\u00e2\u20ac\u2122s response.<\/p>\n

The GSEs plan to use the new short sale timelines to evaluate servicer compliance with the Servicing Alignment Initiative.<\/p>\n

Edward DeMarco, acting director of the\u00c2\u00a0FHFA, says the GSEs new borrower communication and timeline requirements for short sales \u00e2\u20ac\u0153set minimum standards and provide clear expectations regarding these important foreclosure alternatives.\u00e2\u20ac\u009d<\/p>\n

GSE\u00c2\u00a0servicers must comply with the new minimum communication time frames for all short sale evaluations conducted on or after June 15, 2012, although servicers are encouraged to begin implementing the new requirements sooner.<\/p>\n

\u00e2\u20ac\u0153I applaud Fannie and Freddie for finally coming out with real guidance with real world timelines for their servicers,\u00e2\u20ac\u009d commented Anthony Lamacchia, broker\/owner of\u00c2\u00a0McGeough Lamacchia Realty Inc.<\/a>, which specializes in short sales. \u00e2\u20ac\u0153There is no question that this will help short sales and the market as a whole.\u00e2\u20ac\u009d<\/p>\n

Last year Freddie Mac completed 45,623 short sales, a 140 percent increase since 2009. Fannie Mae\u00e2\u20ac\u2122s short sale completions shot up by 101 percent over the same period, totaling around 79,800 in 2011.<\/p>\n

 <\/p>\n

Original article at\u00c2\u00a0http:\/\/www.dsnews.com\/articles\/fannie-and-freddie-set-timeline-requirements-for-short-sales-2012-04-17?utm_source=twitterfeed&utm_medium=twitter<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

BY: CARRIE BAY Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by\u00c2\u00a0Fannie Mae\u00c2\u00a0and\u00c2\u00a0Freddie Mac\u00c2\u00a0should expect to receive a decision on a short sale offer within 30-60 days. The GSEs issued\u00c2\u00a0new guidelines Tuesday\u00c2\u00a0that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to … <\/p>\n

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