No More Commission Cuts for Fannie Mae Short Sales

Published: March 3, 2009

Realegal®NO MORE COMMISSION REDUCTIONS FOR FANNIE MAE SHORT SALES

Fannie Mae loan servicers can no longer require real estate brokers to reduce their commissions as a condition to a short sale approval.  This new Fannie Mae policy takes effect on March 1, 2009.  According to Fannie Mae, the closing of a pre-foreclosure sale cannot be conditioned upon a reduction of the real estate commission to a level below what the listing agent and borrower negotiated.  An exception applies if the total commission is more than six percent of the sales price.

This good news may be tempered by the difficulty for REALTORS® to ascertain whether the underlying loan in a short sale transaction is a Fannie Mae loan.  REALTORS® may wish to ask the lender or loan servicer whether the loan is a Fannie Mae loan, and to consider submitting the Fannie Mae Announcement to the lender with the short sale package.

For a copy of Fannie Mae’s Announcement 09-03 (Servicing Guide, Part VII, section 504.02), please click here.  For a list of Fannie Mae lender partners in California, please click here.

C.A.R. provides REALTORS® with many legal articles covering a wide range of topics of interest.  Some of the new or newly revised legal articles available at http://qa.car.org/ are as follows:


Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)


Last modified: March 3, 2009 at 11:23 am | Originally published: March 3, 2009 at 11:23 am
Printed: September 29, 2020