Greetings,
At the recent NAR meetings in Orlando, many REALTOR® members expressed frustration over the short-sale process and the inconsistencies REALTORS® experience in working with different lenders and servicers. Many REALTORS® also relayed instances where they were forced to reduce and/or waive their negotiated compensation as a condition of getting lender approval on a short sale offer. During the conference, it was encouraging to hear that Fannie Mae recognizes the value REALTORS® bring to the short sale transaction, both to the seller and to Fannie Mae, by keeping these properties from going to foreclosure.
With that in mind, the issue was raised at NAR's Conventional Financing and Lending Committee of asking NAR staff to engage in discussions with Fannie Mae (and potentially other large loan holders) about the possibility of establishing a policy that guarantees that the commission negotiated between the seller and listing agent will be honored as part of the short sale approval process; and that Fannie establish a guaranteed minimum payment amount that REALTORS® will be paid for their efforts in the short sale transaction. The problem appears to be with the servicers of Fannie loans, rather than with Fannie directly. However, Fannie and other lenders, as the owners of these loans, clearly have the ability to impose such requirements on servicers.
In order for NAR to proceed on any discussions with Fannie, etc., NAR staff needs to understand fully the kinds of issues that REALTORS® are experiencing in the short sale process. To that end, NAR staff has asked for specific examples of instances where REALTORS® were forced to reduce and/or waive their negotiated compensation as a condition of getting lender approval on a short sale offer.
If you have had this experience I encourage you to share it with me by replying to this email, so that I can send a synopsis of the responses to the appropriate NAR staff. The sooner I get your response the better, since events in Washington are moving rather quickly.Please be as specific as possible and include the following:
-
Information on the note holder, specifically noting whether the loan was owned by Fannie Mae, Freddie Mac, VA or whether it was a loan held by a private lender;
-
Property address;
-
What you would have been paid had the listing agreement and subsequent offer of cooperation been honored versus what you were actually paid;
-
The circumstances that lead to reduction in your compensation;
-
Who required the reduction - the servicer, the loan holder, some other party; and
-
Other areas of frustration that you experienced as a result of that particular transaction.
|
