New Online Functionality Will Help Process Short Sales – Register Today!
August 21, 2012
With Single-Family Seller/Servicer Guide (Guide) Bulletin 2012-16, we announced requirements related to the Freddie Mac Standard Short Sale. As a part of these requirements, we introduced our new proprietary Obtain Valuation functionality that Freddie Mac Servicers will use to obtain an estimated market value and minimum net proceeds for a Standard Short Sale. The Obtain Valuation functionality will be accessible only through the Freddie Mac Service Loans application.
- Effective November 1, 2012, for borrowers who are 31 days or more delinquent, Servicers must retrieve a property value and minimum net proceeds by using the new Obtain Valuation functionality.
- Until further notice, for borrowers who are current or less than 31 days delinquent, Servicers must:
- Continue to request a property value from BPOdirect® for a Standard Short Sale.
- Request the minimum net proceeds from Freddie Mac by sending an email to ShortSales@FreddieMac.com that includes the Freddie Mac loan number, Servicer name, Servicer loan number, and contact information.
Service Loan Application – Access Property Valuation Amounts
Once you have assessed a borrower for other alternatives to foreclosure following the evaluation hierarchy and the specific instructions in Guide Section B65.38(a), the next step is to use the Obtain Valuation functionality. The new functionality returns the following to the Servicer:
- The estimated market value of a subject property, which you should use to provide listing price guidance to the borrower and real estate broker.
- A minimum net proceeds amount, which is the minimum amount that Freddie Mac will accept upon closing, regardless of the sales price. The Servicer may not divulge the minimum net proceeds amount to any other parties including, but not limited to, the borrower, real estate broker, or housing counselor.
The Obtain Valuation functionality will be available as a tab in the Service Loans application, a tool you already use as a Freddie Mac Servicer. Please note:
- You will use the new tab to submit a request to Freddie Mac for the property value.
- An estimated market value of the mortgaged premises and the minimum net proceed amount as determined by Freddie Mac will be returned by the Obtain Valuation functionality. The returned information will include a "good through date" indicating the length of time the estimated market value of the mortgaged premises and minimum net proceeds will be valid.
- If the offer price of the property, less allowable expenses and costs, meets or exceeds the minimum net proceeds amount, you can settle the short sale transaction through Workout Prospector®.
New Online Functionality Improves the Short Sale Process from Inception
By entering basic property data, similar to the data you enter when using BPOdirect, the Obtain Valuation functionality will:
- Provide more accurate property values.
- Assist with establishing the listing price of the property.
- Provide certainty about the minimum net proceeds from a short sale.
Obtain Valuation Registration
To gain access to the new Obtain Valuation functionality, you must enroll for a new authorized user role, Workout – Specialist, in the Service Loans application by completing and submitting a new Authorized User Roles Form. The forms are:
- Form 902, Freddie Mac Service Loans Application Authorized User Roles Form – For Use by Servicers Only, or
- Form 902SA, Freddie Mac Service Loans Application Authorized User Roles Form – For Use by Servicing Agents Only.
The Authorized User Role Forms have been updated to include the new user role. Visit the Service Loans Application Resource Center to complete and submit the appropriate forms no later than October 15, 2012.
Obtain Valuation is just one component of short sale process changes we are making to help facilitate faster decisioning and settlement of short sales. We encourage you to read Guide Bulletin 2012-16 for detailed information on our updated short sale requirements.
The Obtain Valuation tool is currently in the final stages of development. Additional communications about the functionality will be provided as we begin to implement the new functionality in the coming months.