Wanted to make sure everyone saw these.  Freddie's bulletin can be found here:  http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1216.pdf.  And apparently Fannie's will be available for public consumption tomorrow, 8/22.

I am encouraged by what I have read; but, as always, the efficacy of these changes hinges all too delicately on servicer implementation.

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Yep...CAR just released a bulletin about this:

 

  • Eliminates current Fannie Mae and Freddie Mac short sale programs and creates a single standard short sale process for both entities (Fannie and Freddie HAFA programs will expire at the end of the year).
  • Enables servicers to quickly and easily qualify certain borrowers who are current on their mortgages for short sales without waiting for an approval from Fannie Mae or Freddie Mac
  • Offers special treatment for military personnel with Permanent Change of Station (PCS) orders.
  • Standardizes and clarifies foreclosure suspensions on a property with an approved short sale.
  • May pay borrowers up to $3,000 in relocation assistance.
  • Fannie Mae and Freddie Mac will offer up to $6,000 to subordinate lien holders to expedite a short sale.

Additionally, FHFA clarified that a borrower experiencing a hardship must wait at least two years before becoming eligible for a Fannie Mae or Freddie Mac loan.

These changes follow FHFA’s announcement in June that established strict timelines for servicers to respond to short sales within 30 days of receipt of a short sale offer, provide weekly status updates to the borrower, and communicate a final decision to the borrower within 60 days of receipt of the offer.

 

Just like you, I don't get excited about "new guidelines" anymore. Remember how HAFA was written when it was first announced? Borrowers who previously applied for a loan mod didn't have to re-submit paperwork....yeah right.

 

I'm a little confused on the part in bold above. Does this mean that a borrower who did a short sale will be eligible for a Fannie/Freddie loan in 2 years?

Hi Edwin,
I think the bolded sentence clarifies what are current underwriting guidelines for Fannie and Freddie lending. I am not a mortgage guy, but I believe that Fannie guidelines currently provide that a borrower may be eligible for a loan two years after a short sale if they can put 20%+ down. For Freddie loans I believe the wait period is four years. I am sure that someone here can correct me if I'm mistaken.
In case anyone missed Fannie's release today of its guidelines, here they are: https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2012/svc1219.pdf.

Best,
Chris

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