Short Sale Red Tape Slashed By Fannie Mae and Freddie Mac
Starting Thursday residential servicers approved by Fannie Mae and Freddie Mac can approve short sales without seeking approval from the mortgage insurer on the loan.
All nine mortgage insurers have signed delegated agreements with the GSEs to further streamline short sale and deed-in-lieu transactions.
“The new delegation agreements allow servicers to approve any short sale or deed-in-lieu that meets Fannie Mae’s requirement without individual mortgage insurance approval,” said Fannie senior vice president Leslie Peeler.
Freddie SVP Tracy Mooney noted the standard delegations will streamline the short sale process and reduce delays and costs.
“We applaud the nation’s mortgage insurers for committing to work with us and our servicers to help more borrowers obtain short sales and other foreclosure alternatives,” Mooney said. “By paving the way for more borrowers to avoid foreclosure, today’s announcement will support the housing recovery and help reduce taxpayer losses.”