Fannie Mae and Freddie Mac Short Sale Commissions | Real Estate Short Sale Training
Many agents are still confused about commissions when it comes to short sales.
Here is what is important:
1) If the INVESTOR is Fannie Mae or Freddie Mac the commission can’t be any greater than 6%.
2) There is an appeals process if you have any (or had any) issues collecting your commission as a result of the servicer (or more traditionally called ‘the Bank/ Lender/ Mortgage company etc) not paying you 6%. (this is assuming the listing contract that the seller signed was for 6%)
3) To learn if its a Fannie/ Freddie loan go here: http://www.makinghomeaffordable.gov/loan_lookup.html
As you know we have been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here
Fannie Mae Confirms Short Sales Commissions Policy and Establishes Appeals Process
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001In discussions between NAR and Fannie Mae, Fannie Mae has reconfirmed its short sale commission policy
and established a process for REALTORS® to follow if issues arise. On February 24, 2009, Fannie Mae sent
Announcement 09?03 to its servicers instructing them not to negotiate commissions on short sales below
the amount negotiated by the listing agent, unless the commission exceeds 6 percent.Private mortgage
insurance companies and second lien holders may still seek to reduce commissions. In response to
concerns raised by NAR that some servicers of Fannie Mae loans are unaware of this policy or believe it is
not binding, Fannie Mae has established a process for NAR members when short sale commission issues
arise.Step 1: Determine whether the loan is owned or guaranteed by Fannie Mae. Only the holder of the loan is
allowed to do this, so do so in the presence of your client or after obtaining their written permission.Use this website: www.fanniemae.com/loanlookup, or
If you don’t have convenient internet access, call: 1?800?7FANNIE (8am to 9pm Eastern Time)
Step 2: If the servicer is unaware of or disagrees with the policy, provide a copy of Announcement 09?03 to
the servicer and negotiate an appropriate commission based on the listing agreement (up to 6 percent).Step 3: Contact Fannie Mae if the dispute is not resolved directly with the servicer. Be prepared to provide
the property address, name of owner, and Fannie Mae loan number (if available):Call: 1?800?7FANNIE (8am to 9pm Eastern Time), or
Email: Resource_center@FannieMae.com.
Fannie Mae Announcement 09?03 (2/24/09)
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0903.pdf
AND FreddieMac’s Commission Guidelines….
Freddie Mac Issues Written Short Sales Commission Policy
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001On August 20, 2009, Freddie Mac confirmed in writing that its servicers are not allowed to renegotiate short sales commissions. According to the policy, as a condition of the servicer’s acceptance of a short sale offer, servicers cannot renegotiate the sales commission below the amount agreed to by the real estate broker and the seller/borrower. However, if the negotiated commission exceeds 6 percent, servicers are required to limit it to 6 percent. This Freddie policy is consistent with Fannie Mae’s policy. Private mortgage insurance companies and second lien holders may still seek to reduce commissions.
NAR has asked Freddie to establish an appeals process for cases when servicers refuse to comply with Freddie Mac’s policy.
Freddie Mac Single-Family Seller/Servicer Guide Bulletin 2009-22 (August 20, 2009)
http://www.freddiemac.com/sell/guide/bulletins/pdf/bll0922.pdf
Fannie Mae Short Sales Commissions Policy and Appeals Process
http://www.realtor.org/wps/wcm/connect/4fb4f4804e824cf0a6e8e696c79aa288/government_affairs_fannie_short_sales_policy.pdf?MOD=AJPERES&CACHEID=4fb4f4804e824cf0a6e8e696c79aa288
NAR’s Short
Popularity: 3% [?]
Similar Posts:
- Freddie Mac Forced To Buy Back Bad Loans. | Real Estate Training. Freddie Mac is buying back the loans...
- Breaking Short Sale News | New Treasury Department Shortsale Guidelines…. Harris Real Estate University students (and future...
- The Future Fate Of Fannie And Freddie..’Abolish Fannie Mae and Freedie Mac’, Barney Frank Harris Real Estate University Students….watch this story....
Well, Tim, I see this sadly still states “Private mortgage
insurance companies and second lien holders may still seek to reduce commissions.” Yep, I presume that the first lien holder lender’s loss mitigation negotiators probably won’t work too much to keep the real estate agent’s commission at the 6%.
I recall that you mentioned, Tim, that MOST houses have two mortgages on them. It’s a sad majority problem still then! Really, 6% pay-at-the-end-fee isn’t greedy. I presume that most servicers, lenders, and their loss mitigation negotiators know that short sales take the LISTING real estate agent twice as much work/effort to process; since they require TWICE the paperwork faxed multiple times to lenders [who claim papers lost ... who know maybe they aren't pulling our leg in order to stall in order to push an uninspiring loan modification instead], TWICE the contacts with title company rep preparing HUD1 Report and Title Search, and TWICE the calls to both lenders asking for them to release their lien.
Excellent points…