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Fannie Mae Will Not Allow Servicers to Cut Realtor Commissions if they are 6%!!!

By
Real Estate Agent with Max Broock Realtors

Great News for us Short Sale Realtors fighting the good fight.  Fannie finally gets it!! We Realtors are saving them Billions of Dollars by performing pre-Foreclosure Sales, (Short Sales).  In the past, the servicers were bulling us around, threatening to cut are commission if the buyer asked for concessions or if the seller was not willing to contribute to closing cost or just to cut our commission because they could.  See below and then my commentary to follow!!

No Negotiation of Preforeclosure Sales Commission Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales.

Michael A. Quinn, Senior Vice President Single-Family Risk Officer

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0903.pdf

Funny, I had a client who was told by an attorney that a Realtor could not do a short sale and that the banks want to work with lawyers.  Well, I do not see Fannie pay attorneys, just Realtors.  Fannie realizes that we Realtors have value. We contribute to the greater good.  This is validation of our service in this housing crisis. Keep up the good work my fellow Short Sale agents, the better job we do, the more the banks will see us a partners instead of predators and we will end the unneeded foreclosures that have plagued our market!!

Mike Sher

Comments(8)

Amanda Wilson
EWM International Realtors, Inc. - Fort Lauderdale, FL
Real Estate Advisor

For all the work that's involved in a short sale, I'm not sure 6% is enough!

Feb 26, 2009 07:19 AM
Mike Sher
Max Broock Realtors - Bloomfield Hills, MI

amanda

Maybe 6% is to low, but it is nice to know that they see value in us!!

Mike

Feb 26, 2009 07:25 AM
Kathy Opatka
RE/MAX CROSSROADS - Ocean City, MD
Serving Ocean City, MD, & The Delaware Beaches

Mike,

Interesting!!!  I need to think about this "suggestion" by Mr. Quinn.....

Kathy Opatka Re/Max OCEAN CITY, MARYLAND

Feb 26, 2009 07:46 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

It is about time!  Maybenow I may be interested in selling them.  A lot of my friends have avoided selling them.

Feb 26, 2009 08:49 AM
Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"

I heard that today, Lenn wrote a post on that, that is excellent to hear...no more 50/50 split.....

Feb 26, 2009 10:02 AM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Mike- Thanks! For this update!  I just printed the Fannie page out just in case any of these servicers try this crap with us again! It is about time! Katerina

Feb 26, 2009 10:23 AM
Loan Survivor Real Estate Financing Expert
Purchases, First Time Buyers, Pre-Approvals, Refinance - Birmingham, MI

I'll keep my fingers crossed that servicers start following this right away.  I'm hoping there aren't a few loss mitigators that hold out for the power trip they get.

Feb 26, 2009 11:10 AM
Anonymous
Jacob

Does anyone know if the March 1st date applies to the COE or the approval date?  I got an approval two weeks ago and they cut the commission to 5%.  I want to see if I can get it back up to 6%.  The COE is March 19th.  Any thoughts?  Thanks.

Mar 03, 2009 01:51 AM
#8