The Federal Housing Finance Agency (FHFA) recently announced a new short sale directive that directs Fannie Mae and Freddie Mac to align their guidelines for servicing delinquent mortgages they own or guarantee. The new directive requires that servicers of Fannie and Freddie loans:
- Review and respond to borrower requests for short sales within 30 days after receipt of a short sale offer and a complete borrower request.
- If review is still under way after 30 days, give the borrower weekly status updates (this allows more time where necessary, such as where subordinate lenders and/or mortgage insurance is involved).
- Advise borrower of the final decision within 60 days after receipt of a short sale offer and a complete borrower request.