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Freddie Mac confirms short sale commission policy

By Martin E. Kalisker, Esq.

Real Estate Attorney MA 9505496/Broker

November 05, 2009 12:27 AM

In a bit of positive news, Freddie Mac recently confirmed, in writing, that Loan Servicers may not renegotiate sales commissions below the amount agreed to by real estate brokers and sellers, whcih is now consistent with Fannie Mae policy on the same issue. Previously, Freddie Mac officials has publicly stated such a policy, but had not confirmed it in writing.

If the negotiated commission exceeds six percent, servicers are required to limit it to six percent. The National Association of Realtors has asked Freddie Mac officials to establish an appeals process for cases when servicers refuse to comply with the commission policy.

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Roy Kelley

Retired - Gaithersburg, MD

Thanks for sharing. Unfortunately, many asset managers ignore this policy.

Nov 05, 2009 12:34 AM

Tammy Lankford,

Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA

Broker GA Lake Sinclair/Eatonton/Milledgeville

I wonder why it is that it's illegal for brokerages to "fix" commission, but okay for the government to do so. I guess the same reason Bernnie Madoff is in prison for what the government does with our social security.

Nov 05, 2009 02:50 AM

Anonymous

RSLoat

Many of the major Servicers are still trying to negotiate commissions on Dual Agency situations, and Freddie Mac needs to clarify their policy to keep everyone on the same page.

Jan 28, 2010 05:11 AM

Martin E. Kalisker, Esq.

Natick, MA

Real Estate Law From A Practical Perspective

Yes, in fact yesterday at a meeting several of us were discussing Freddie Mac and how they are negotiating down dual agency commissions. You're talking to the wrong guy if you want me to defend dual agency - especially in the context of foreclosures (i.e. how can you represent the buyer and learn about potential disclosure items which could be to the detriment of the lender who is representing no knowledge or disclosure of anything). I guess that's why many lenders want the realtor to sign some form of indemnification agreement.

Anyway, I would suggest instead of FNMA and FHLMC creating a policy for dual agency, they outright prohibit it in the first place....

Jan 28, 2010 07:28 AM

Freddie Mac confirms short sale commission policy

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Martin E. Kalisker, Esq.

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