Weekly Update From Tom Balk: FNMA Position on Commissions on Short Sales

MortgageBRIEF from Tom Balk

This is a great time to buy; so let’s work together to get ready to make a commitment and get pre-approved.

Timely Topics

In response to concerns raised by NAR that some servicers of Fannie Mae loans are unaware of FNMA’s short sale commissions policy or believe it is not binding, Fannie Mae has established a process for NAR members when short sale commission issues arise.

Step 1: Determine whether the loan is owned or guaranteed by Fannie Mae. Only the holder of the loan is allowed to do this, so do so in the presence of your client or after obtaining their written permission.

Use this website: www.fanniemae.com/loanlookup, or call: 1-800-7FANNIE

Step 2: If the servicer is unaware of or disagrees with the policy, provide a copy of Announcement 09-03 (available on realtor.org) to the servicer and negotiate an appropriate commission based on the listing agreement (up to 6 percent).

Step 3: Contact Fannie Mae if the dispute is not resolved directly with the servicer. Be prepared to provide the property address, name of owner, and Fannie Mae loan number (if available):

• 30 Year Conf Fixed 5.25% 1 point
• 5/1 Conforming WOW 4.75% No points
• 30 Yr Agency Jumbo 5.5% 1.5 points (have the seller pay these..?)
• 30 Year FHA 5.50% 1 point
• 5 Year Jumbo 5.25% 1 point
• 30 Year Jumbo 6.625% 1 point

Tom Balk – tom@afirealestate.com