June 22nd, 2012 at 7:03 pm
The 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 changes coming in June set out new timelines for actions by mortgage servicers with regard to short sales.
The new requirements require a mortgage servicer to:
1. Acknowledge receipt of a short sale offer within 3 day business days
2. Notify a borrower within five business days if the information packet provided by the borrower is incomplete.
3. Review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer.
4. Provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days
5. Make and communicate final decision to the borrower within 60 calendar days of receipt of the offer and complete borrower response package.
It is anticipated that additional enhancements regarding borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance will be out by the end of 2012.
As always, feel free to contact us with any questions you may have.
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