New HUD PFS new mortgagee letter effective 10/1/13. HUD 2103-23. This Inman News article http://www.inman.com/2013/09/20/nar-hud-shooting-itself-in-the-foot... says the new policy prohibits dual agency. I don't see anything in the mortgagee letter about that. Does anyone know anything about this?
To meet the PFS Addendum requirements, brokers and their agents may only represent the buyer or the seller, but not both parties;
Yes, this is correct. NAR is objecting to this new rule.
As well they should.
I have several follow up questions...Has anyone received specific info from NAR about the status of their dispute?
Policy being effective 10/1; for offer submitted after that time or those in process of being approved?
My broker said it would be a violation of our board's rules to exclude the other agents in our office. Anyone else have this problem?
We work with so many FHA short sales that I'm really concerned about how to comply procedurally and of course the possible loss of revenue if we can't represent both sides of the transaction.
Does anybody have any clarity as to when will the new decision will affect?
Is it going to be goinf forward or will be retroactive?
I own a small real estate office in Passaic County, NJ where the average of Short Sales surpass 50% of the sales. With that in mind I have short sales in the pipeline due to close before end of year and will really like to get some info on this topic.
BTW: The "Debt forgiveness Act" is schedule to expire on 12/31/2013, why would they come up with these guidelines now, Funny.
HUD DUAL AGENCY BAN PER ML 2013-23 WILL NOT BE IMPLEMENTED
Great new for the team and consumers! The HUD FHA ban on brokerage dual agency in short transactions WILL NOT be implemented on October 1, 2013. We have fielded many questions from our agents regarding this issue so please distribute this information sooner versus later. As always, we are the source of industry news!
TO: NAR L-Team
State and Local Association Executives state and Local Association Government Affairs Directors
FROM: NAR Government Affairs
RE: HUD Policy on Dual Agency Agreements
DATE: 23 September 2013
As reported earlier this week, NAR Government Affairs informed you that on October 1st HUD would be implementing a new policy that would have prevented dual agency agreements in FHA pre-foreclosure transactions.
NAR has been working with HUD closely to modify the policy. This afternoon HUD reported to NAR that they will reissue the July Mortgagee Letter and remove all dual agency language (Part Three of the PFS Participation Requirements).
The result is that the dual agency policy will not be implemented on October 1, 2013 allowing NAR to continue the dialog with agency officials on a formal solution.
HUD announced the policy change in response to fraud and abuse detected by the HUD Inspector General in the pre-foreclosure sales process.
The letters sent to HUD by our State and Local Association Presidents highlighted NAR’s concerns about the policy and the disruptive effect its implementation would have on communities across the nation.
***MEMO IS FORWARDED FROM TRUSTED SOURCES AT AAR and CAR
G-II Varrato II
RET USAF 820th CES RED Horse, REALTOR®
Director Community Outreach (Veterans Association of Real Estate Professionals) VAREP
Lori - Thank you! Do you have any link to the source?
That letter came directly from
National Association of REALTORS®
500 New Jersey Avenue, N.W.
Washington D.C. 20001
We are monitoring the HUD ML Letter site and will advise everyone once the revised ML is published. That should be today, tomorrow or at the latest, Monday.
We'll be in touch.
Lori & G-II (Lori Klindera & G-II Varrato II) REALTORS® with Coldwell Banker Residential Brokerage in Phoenix, Arizona. “G-II” is retired USAF. Lori & G-II are ranked as the No. 1 Short Sale REALTOR® team for Coldwell Banker Residential Brokerage in Arizona. Lori & G-II have continually been ranked in the top 1% of all REALTORS® for all Arizona, with Coldwell Banker Residential Brokerage, for the past 12 years. In 2011 & 2012 Lori & G-II were ranked 6th in the state in overall production and are ranked in the top 2% of all Coldwell Banker Agents in the United States. Lori & G-II have helped dozens of F-16 Falcon Pilots, F-22 Raptor Pilots, A-10 WartHog Pilots, and support staff, liquidate their Underwater Mortgages through the Short Sale, HAFA Short Sale and HAP process. You can contact them at [email protected] or by phone at 602-796-5674. Quitting is NEVER an Option!
http://www.realtor.org/articles/hud-removes-dual-agency-restrictions Posted on front page of NAR's website. I hope they talk to experienced agents about this issue before they revisit and decide on this topic again.
Just saw Bank of America email about this topic. Their announcement didn't retract the dual agency. Do you think they are just behind on the NAR announcement? Anyone know if BAC will be restating their announcement?