Realtor Commission Reductions Eliminated for Fannie Mae Short Sales
By: Paul Silvestri
Effective March 1, 2009, Fannie Mae loan servicers will no longer require real estate brokers to reduce their commissions as a condition to a short sale approval. According to Fannie Mae, the closing of a pre-foreclosure sale cannot be conditioned upon a reduction of the real estate commission below what the listing agent and borrower negotiated. However, there is one exception: if the total commission is more than six percent of the sales price, this new policy will not apply.
What does this mean for Realtors? Now realtors will need to determine whether the underlying loan in a short sale is a Fannie Mae loan. Realtors now will want to ask the lender or loan servicer whether the loan is a Fannie Mae loan, and if necessary, submit the Fannie Mae Announcement to the lender with the short sale package. Loan servicers still must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure.
Click here to view the announcement from Fannie Mae.
Click here to return to our blog
www.yesnerboss.com
Effective March 1, 2009, Fannie Mae loan servicers will no longer require real estate brokers to reduce their commissions as a condition to a short sale approval. According to Fannie Mae, the closing of a pre-foreclosure sale cannot be conditioned upon a reduction of the real estate commission below what the listing agent and borrower negotiated. However, there is one exception: if the total commission is more than six percent of the sales price, this new policy will not apply.
What does this mean for Realtors? Now realtors will need to determine whether the underlying loan in a short sale is a Fannie Mae loan. Realtors now will want to ask the lender or loan servicer whether the loan is a Fannie Mae loan, and if necessary, submit the Fannie Mae Announcement to the lender with the short sale package. Loan servicers still must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure.
Click here to view the announcement from Fannie Mae.
Click here to return to our blog
www.yesnerboss.com