Important Freddie Mac Standard Short Sale and Obtain Valuation Reminders
October 10, 2012
We are getting closer to the mandatory implementation date for the Freddie Mac Standard Short Sale. The new short sale process will help Servicers prevent foreclosures and aid more homeowners. The upcoming dates and key information for implementing the new Standard Short Sale and our new Obtain Valuation functionality were first announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2012-16. In that Guide Bulletin, we announced alignment of our short sale requirements with Fannie Mae under the direction of the Federal Housing Finance Agency. The alignment provided a single short sale solution once the Home Affordable Foreclosure Alternatives initiative described in Guide Chapter D65 expires on December 31, 2012.
The Obtain Valuation functionality is available in the Freddie Mac Service Loans application. It provides an estimated market value for you to use to give listing price guidance to borrowers and real estate brokers. The functionality also provides a minimum net proceeds amount that will allow you to approve a short sale without obtaining Freddie Mac’s pre-approval.
New Standard Short Sale Policies are Effective November 1
The Standard Short Sale requirements are effective for new borrower evaluations conducted on or after November 1. The requirements cover all aspects of a short sale, including borrower solicitation, eligibility, obtaining a property valuation, closing, reporting, and remittance. The Standard Short Sale also authorizes Freddie Mac Servicers to approve more short sale transactions for borrowers who are experiencing common hardships at all stages of delinquency.
Deadline to Register for the Obtain Valuation Functionality is October 15
A key component of implementing the Standard Short Sale is our proprietary Obtain Valuation functionality, which will be available as a tab in the Service Loans application November 1. Servicers must use the Obtain Valuation functionality for borrowers who are 31 days or more delinquent.
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.
Visit the Service Loans Application Resource Center to complete and submit the appropriate form by no later than October 15.
Obtain Valuation Bulk Import File Layout Now Available
The Obtain Valuation Bulk Import file layout provides formatting guidance for submitting multiple property valuation requests in lieu of entering the data individually, which can save time. The layout file format is specific for use with Obtain Valuation and is now available on the Service Loans Application Resource Center.
Standard Short Sale and Obtain Property Valuation Training Opportunities
Take advantage of the following training opportunities:
- Bulletin 2012-16: Freddie Mac Standard Short Sale webinar details the complete requirements for the new Standard Short Sale option.
- Standard Short Sales: Obtain Property Valuation webinar outlines the new property valuation process, available in the Service Loans application, that will provide an estimated market value and minimum net proceeds enabling your Loss Mitigation staff to determine whether a purchase offer meets Standard Short Sale requirements.
- Standard Short Sales: Obtain Property Valuation tutorial and Standard Short Sales: Obtain Property Valuation Using Bulk Import tutorial available on the Secure Resources section Learning Center Loss Mitigation website. These tutorials provide information on the new Obtain Valuation functionality in the Service Loans application and a better understanding of the bulk import process, specifically on the bulk import of data, search, and export functions. You will need your Servicing Applications ID and password to access secured resources.
- Read Guide Bulletin 2012-16.
- Visit the new Standard Short Sale Web page.
- Read the Obtain Valuation functionality News Center article.