New Fannie Mae Guidelines going into effect today reinforce the importance of exposing your listing to market forces through the MLS. In a Servicing Guide Announcement released on June 19, 2013, Fannie Mae included the following requirement:
Multiple Listing Service Requirements for Standard Short Sale/HAFA II
Servicing Guide, Part VII, Section 604.05: Requesting Fannie Mae’s Approval; Announcement SVC-2012-19, Standard Short Sale/HAFA II and Deed-in-Lieu of Foreclosure Requirements
On or after August 1, 2013, all properties being considered for a standard short sale/HAFA II must be listed with an active status on a multiple listing service (MLS) for a minimum of five consecutive calendar days, including one weekend (i.e., Saturday and Sunday), prior to the servicer
- submitting the standard short sale/HAFA II recommendation to Fannie Mae for review, or
- approving the standard short sale/HAFA II.
The property must be listed on the applicable MLS which covers the geographic area in which the property is located and a printed copy of the property’s MLS listing must be kept on file. If a property is located in an area that is not covered by an MLS, the property must be advertised in a manner customary for that real estate market for at least five consecutive calendar days, including one weekend.
We are seeing other signs that concerns about the fair market value of homes withheld from the MLS (or included on the MLS only after the offer is accepted) are growing. At the Inman Real Estate Connect Conference in San Francisco in July, it was reported that Appraisers are beginning to dis-allow comps from Off-MLS sales citing the purpose of an appraisal is to determine fair market value of that property; if the property was withheld from the market then buyer demand, competition, and other open market forces may not have come to bear and therefore the price at which the property sold may not necessarily have been “fair market value.”
As you are taking listings – especially short sale listings – be certain you are up to date on the requirements of the various banks as well as NNRMLS Rules and Regulations and Policies. Please feel free to contact us with any questions.