“Fannie Mae & Freddie Mac Say, Short Sales to be Streamlined in June”
For the most part, I'm not in favor of all the crazy regulations that we have to deal with in the mortgage industry, that are labeled for the good of the people. All of which means you can’t think for yourself, so we’ll do the thinking for you. However, if this really works the way that it is being sold to us, count me in favor of it.
The sooner that we work through the foreclosure and short sale process in this country, the sooner we can stabilize values, everywhere.
We have all heard or been part of the crazy time delays, it would be great to move the process along, so that it is smoother and quicker. What do you think?
By: The Niche Report
New Timelines Take Effect in June
The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to develop enhanced and aligned strategies for facilitating short sales, deeds-in-lieu and deeds-for-lease in order to help more homeowners avoid foreclosure. The effort will come in stages with the first taking place this June. The new, aligned timelines include the requirement that mortgage servicers review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer.
“FHFA and the Enterprises are committed to enhancing the short sales and deeds-in-lieu process as additional tools to prevent foreclosure, keep homes occupied and help maintain stable communities,” said FHFA Acting Director Edward J. DeMarco. “These timeline and borrower communication announcements set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”
With the alignment, servicers will be required to do the following:
· 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;
· provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days;
· make and communicate final decisions to the borrower within 60 calendar days of receipt of the offer and complete borrower response package.
By the end of 2012, Fannie Mae and Freddie Mac will announce additional enhancements addressing borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance.