New FNMA, FHLMC Guidelines Effective Nov. 1, 2012

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?

Replies

Chris Black August 22, 2012 at 1:46pm

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
Edwin Baloloy August 22, 2012 at 6:48am
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?
- Chris Black > Edwin Baloloy August 22, 2012 at 1:49pm
  
  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.

This reply was deleted.