FHFA Calls for Streamlined Short Sales, Freddie Mac Updates Short Sale Requirements

more+
less-

On April 17, the FHFA directed Fannie Mae and Freddie Mac to develop procedures for streamlining short sales, deeds-in-lieu and deeds-for-lease in order to avoid foreclosures. Under the new Fannie Mae and Freddie Mac policies, servicers will be required to (i) review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer and a complete borrower response package, (ii) provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days, and (iii) make and communicate final decisions to the borrower within 60 calendar days of receipt of the offer and complete borrower response package.

Also on April 17, Freddie Mac issued Servicing Guide Bulletin 2012-09, which clarifies existing requirements and adds new minimum requirements for communication timelines for Home Affordable Foreclosure Alternatives Short Sales and short sales processed under Guide Chapter B65. Servicers are encouraged to begin implementing the new requirements as soon as possible, but must do so for all new borrower evaluations conducted on or after June 15, 2012.

 

Published In: Administrative Agency Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »