FHFA Directs Fannie Mae and Freddie Mac To Expedite Decisions on Short Sales

The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to develop “enhanced and aligned strategies” to boost short sales and deeds in-lieu transactions for borrowers facing foreclosure.

In an April 17 announcement, the regulator said the two government-sponsored enterprises (GSEs) will implement new timelines for making decisions on short sales, beginning in June.

Mortgage servicers that handle GSE-backed loans will be required to acknowledge receipt of short sale purchase offers within three business days, and issue a response to the request within 30 days, FHFA said. Servicers will be generally required to make a final decision ...