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-with-short-sale-policy/ says the new policy prohibits dual agency. I don't see anything in the mortgagee letter about that. Does anyone know anything about this?
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I think proper recognition should be given to Sarah Young of NAR Government Affairs Department on this issue. Here's the story:
On August 8th, I contacted Sarah to inform her my understanding of the possible problem of dual agency restriction within the new HUD guidelines released in ML 2013-23. She immediately requested and received confirmation from HUD that our understanding was correct - NO DUAL AGENCY would be allowed. She requested the reason and was told because of concern of fraud/misrepresentation, however, no factual data was produced. Sarah continued to 'bull-dog" this issue, which was no easy task, and on Thursday, September 18, letter was sent to the Assistant Secretary of HUD by NAR President Gary Thomas. By this time many other individuals and associations had entered into the fray and Sarah was at the center of it all. HUD responded by agreeing to remove all verbiage from the new PFS guidelines- FOR NOW! Work still needs to be done.
As the Short Sale Facilitator/Trainer for Long Realty, my only duty is to research and stay as current as possible on all the different short sale programs. Over the past few years, I have had to contact NAR on numerous short sale issues. Both Charlie Dawson and Sarah Young in the NAR Government Affairs Department have always been to there to "cover our backs". Their passion and commitment to help and protect our industry is amazing. Thanks to both of them.
Just in… Dual Agency Reversal has been published by HUD in ML 2013-34 http://portal.hud.gov/huddoc/13-34ml.pdf
Implementation of the “PFS Participation Requirement” section stipulated in Mortgagee Letter (ML) 2013-23 has been delayed until further notice. PFS participation requirements denoted in ML 2008-43, 2002-13, and 2000-05 remain in effect.
All other provisions included in ML 2013-23 remain in effect.
Delayed Implementation of “PFS Participation Requirement” Section included in Mortgagee Letter 2013-23, Updated Pre-Foreclosure Sale (PFS) and Deed in Lieu (DIL) of Foreclosure Requirements
Get this out to all of the servicers you’re working with RE FHA PFS transactions
We did it… This battle is done but the fight is far from over… LOL
I saw the NAR announcement...I'm wondering if the Bank of America employees know about it. They sent out an announcement yesterday based on the 'old news'.
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?
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!
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TO: NAR L-Team
Regional Vice-Presidents
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
Very Respectfully,
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®
Government Affairs
Communications Director
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.
Very Respectfully
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 ShortSale@AirForceHomeSeller.info 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.
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