As of March 1, 2009, Fannie Mae loan servicers can no longer require real estate brokers to reduce their commissions as a condition of approving a short sale.
We all know working short-sales requires a tremendous of amount of work and stress for all parties involved, and then BAM! … along would come a REQUIREMENT from the Fannie Mae servicer that those agents working so hard on those short-sales to work for less or they wouldn’t approve the short-sale.
Can you say ‘blackmail‘??? That’s certainly what it has felt like at times…..
The new Fannie Mae policy becomes effective March 1, 2009. Per the Fannie Mae Announcement, the approval cannot be made conditional upon the commission being reduced to an amount lower than that which was negotiated between the listing agent and the seller (Fannie Mae borrower). There is one exception to this – if the total commission is above six (6) per cent of the sales price.
If you work short-sales, you know it may be a challenge finding out from the lender or loan servicer if the loan is a Fannie Mae loan. If you’re having difficulty getting that information, send them a copy of the Fannie Mae Announcement with your short-sale paperwork.
For the full information on the Fannie Mae Announcement 09-03, be sure to click on this link. See page 2, section VII – “No Negotiation of Preforeclosure Sales Commission”.