Magazine article Mortgage Banking

Freddie Mac Sees Short Sales Climb in 2011; Issues New Servicer Timelines

Magazine article Mortgage Banking

Freddie Mac Sees Short Sales Climb in 2011; Issues New Servicer Timelines

Article excerpt

McLean, Virginia--based Freddie Mac ramped up its completed short sales last year and has tightened its timelines for short-sale approvals by its servicers. The company said it completed 45,623 short sales in 2011, which was a 140 percent increase since 2009.

Freddie is requiring servicers to provide weekly updates when short-sale decisions take more than 3o days after receipt of a complete application for a short sale under the Home Affordable Foreclosure Alternative (HAFA) initiative or under Freddie's regular short-sale program. In any case, all decisions on short sales must be made within 6o days, Freddie announced.

Commenting on the new timelines, Tracy Mooney, Freddie Mac senior vice president, single-family servicing and REO (real estate owned), said, "Short sales are more complex than routine home sales since they may involve multiple parties and long-distance negotiating. Freddie Mac's new timelines are intended to help make the decision process more transparent and timely for short sales under the Obama administration's HAFA program or Freddie Mac's traditional short-sale option. [Our] announcement underscores our commitment to help reduce credit losses and taxpayer risks by supporting more opportunities for sustained occupancy in our nation's homes. …

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