Fannie
Mae & Freddie Mac:
Short
Sale Servicing Timelines
(Effective
June 2012)
Important timelines that FNMA and FHLMC are requiring of
their servicers to help expedite the Short Sale process. You can share this information openly with
your client so you can help minimize the time and frustration of getting your
short sale closed.
There are so many processes for the short sale process to
work its way through the system that the agencies have now clearly defined
their expectations on what is acceptable and established very clear minimum
requirements for the servicers to perform their duties, with a maximum time frame defined.
Here is a table that shows the time frames (same for both
agencies):
HAFA stands for Home Affordable Foreclosure Alternatives
HAFA - Servicer Evaluation of Borrower Response
Package (BRP)
|
|
Within 3
business days of receipt of the BRP (Borrower Response Package)
|
The
servicer must acknowledge receipt of the BRP to the borrower either verbally
or in writing.
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Within 5
business days of receipt of the BRP
|
If the
servicer determines that documentation is missing, the servicer must send an
Incomplete Information Notice to the borrower.
|
Within 5
business days of a decision but in no event more than 30 calendar days after
receipt of a complete BRP
|
The
servicer must send an Evaluation Notice to the borrower.
If the
servicer determines a HAFA Short Sale is the most appropriate foreclosure
alternative, the HAFA Short Sale Agreement (Form 184) and the HAFA Request
for Approval of Short Sale without Short Sale Agreement (Form 185) should be included with
the Evaluation Notice.
|
Within
30 calendar days after receipt of the complete BRP but in no event more than
60 days after receipt of the complete BRP
|
If the
servicer is unable to fully evaluate the borrower for a HAFA, including
preparation of the Form 184 and Form 185, an extension of 30 calendar days is
permitted as long as the servicer provides weekly verbal or written status
updates to the borrower.
All
communication must be documented in the mortgage loan servicing file.
The
servicer must send the Evaluation Notice no later than 60 days after receipt
of the complete BRP.
|
Within
14 calendar days after return of a fully- executed Form 184
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The
servicer must allow the borrower 14 calendar days to return a fully-executed
Form 184 with required documentation.
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Within
10 calendar day extension of return of fully-executed Form 184
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If
necessary, the servicer may allow the borrower up to 10 additional calendar
days to complete the Form 184 submission.
|
|
HAFA Request for
Approval of Short Sale without Short Sale Agreement
(Form 185)
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|
Within 10 business days of receipt of the Form 185
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The servicer must respond with a decision of approval or denial.
·
If the offer results in net
proceeds equal to or greater than the minimum acceptable net proceeds (MANP),
the servicer must approve the short sale.
·
If the offer does not result in
net proceeds equal to or greater than MANP, the servicer must provide a
counteroffer with the denial.
·
The MANP should not be disclosed
to the borrower.
|
5 business days after communicating a counteroffer
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The servicer must request a response from the borrower on the
purchaser’s decision of a counteroffer.
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Within 10 business days after receipt of revised offer
|
The servicer must respond with a decision on a revised offer
from the borrower.
·
If the offer results in net
proceeds equal to or greater than the MANP, the servicer must approve the
short sale.
·
If the offer does not result in
net proceeds equal to or greater than the MANP, the servicer may provide a
counteroffer with the denial.
·
The MANP should not be disclosed
to the borrower.
|
Non-HAFA Preforeclosure Sale - Prior to Receipt of a Preforeclosure Sale Offer
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Within 3 business days of receipt of the BRP
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The servicer must acknowledge receipt of the BRP to the borrower
either verbally or in writing.
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Within 5 business days of receipt of the BRP
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If the servicer determines that documentation is missing, the
servicer must send an Incomplete Information Notice to the borrower.
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Within 5 business days of a decision but in no event more than
30 calendar days after receipt of a complete BRP
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The servicer must send an Evaluation Notice to the borrower.
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Non-HAFA Preforeclosure Sale – Preforeclosure Sale Offer Received with a BRP
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Within 3 business days of receipt of the offer
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The servicer must acknowledge receipt of a short sale offer.
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Within 5 business days of receipt of the offer
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If the servicer determines that documentation is missing, the
servicer must send an Incomplete Information Notice to the borrower.
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Within 5 business days of a decision but in no event more than
30 calendar days after receipt of a complete BRP
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The servicer must respond to the short sale offer with approve,
approve with conditions, deny with counteroffer, or “still under review.”
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5 business days after communicating a counteroffer
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If the response is “deny with counteroffer,” the servicer must
request a response from the borrower on the purchaser’s decision of a counteroffer.
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Within 10 business days after receipt of revised offer
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The servicer must ensure that revised offers are evaluated
within time frames that enable a decision to be communicated to the borrower
within 10 business days after receipt of the revised offer.
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30 calendar days after receipt of the BRP
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If the servicer responds with “still under review,” an extension
of 30 calendar days is permitted as long as the servicer provides weekly
verbal or written status updates.
All communication must be documented in the mortgage loan
servicing file.
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Within 60 calendar days of receipt of the BRP and offer
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The servicer must respond with a final decision.
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