February Agent Matters
Fannie Mae HomePath
HomePath® Agent Matters - February 2015

In This Issue...

HomePath REO
Ready to Submit an REO Offer on a Fannie Mae-owned property? Avoid These Common Errors.
Rebuilding After a Bankruptcy; This Buyer Found Home on HomePath.com
Fannie Mae Expands Access to Credit for First Time Buyers
Working with your Fannie Mae REO Listing Agent; Seal the Deal

HomePath Short Sales
Check out the Expanded Short Sales Website
Get Short Sales Guidance Today; Short Sale List Price and Contract Tutorial
How Does Fannie Mae Estimate Short Sale Values?
Who Are the New Short Sales Servicers?
Short Sale Resources

HomePath REO
Ready to Submit an Offer? Avoid These Common Errors

When your buyer is ready to make an offer, you want to be prepared. Start by reviewing the Tips for Selling Agents on HomePath.com to help you complete the contract package correctly. Fannie Mae only considers complete and correct contracts!

Here are some more tips to help you navigate through the preparation of a contract package:
  • Information in the local or state contract must match the information supplied in Fannie Mae's Real Estate Purchase Addendum (REPA)
  • Neither the contract nor the REPA can have mark-outs or changes in any of the documents unless specifically directed.
  • Include all requests (such as seller paid closing costs, home warranty, etc.) in Section 38 of the REPA
  • Include the verbiage "Pursuant to section 28 of the Real Estate Purchase Addendum, this document is subject to all terms and conditions set forth in the Real Estate Purchase Addendum" in the state contract 
  • Ensure that all buyers sign the contract, REPA and all other associated documents and that the buyers’ names are exactly as they should be for closing. The contract names must match the names you enter into HomePath Online Offers.
  • Follow all other real estate licensure guidelines and property disclosures for completing these executable documents.
Details count when preparing the contract package. If negotiations changed any terms, a new contract and addenda must be prepared for seller execution reflecting the final negotiations.  Ensure a smooth closing for your buyer: pay attention to these details up front.

Using the HomePath Online Offer system

Fannie Mae will only consider offers made through the HomePath Online Offer system. To make an offer, log on to HomePath.com. Locate a property by using the Search feature; click the Online Offer logo to access the listing details page of the property. Click the Make an Offer button to start the online offer submittal process. Questions? Check out homepath.com/offerQuestion.html

Rebuilding After a Bankruptcy; This Buyer Found Home on HomePath.com

For a homeowner trying to get back on her feet after a bankruptcy, homeownership may seem like an unattainable milestone, but this homebuyer made it happen with a sound plan and with a search that began on HomePath.com.

Dusting Off
Terri Fraser, based in Northern Florida “lost everything” in 2008 and declared bankruptcy to regain her financial footing. Fraser eventually found a new job, and focused on rebuilding her credit in hopes of purchasing her first home. She knew she’d have to wait a few years before she could qualify for a Fannie Mae or Freddie Mac-backed loan. During that time she made sure to pay her bills on time and start saving toward her down payment. When she felt she was finally ready to make a purchase, her savings was nicely bolstered by a year-end bonus from her employer.

The Search for a Home
Now ready to begin the search, Fraser used the internet to investigated potential properties, and visited the homes that piqued her interest, including many Fannie Mae-owned properties found on HomePath.com. Homepath.com featured a wide selection of homes in neighborhoods across the country - from single-family homes to condominiums and town houses. Many were move-in ready while some needed light or more extensive renovations.

Moving In and Moving Up.
In just a few weeks, Fraser found the right home for her needs, a townhome in Jacksonville that was freshly painted and "move in" ready. She didn’t waste any time: "I put the offer in on a Friday and was accepted on Tuesday," she says, "it was really a simple and fast process." The townhome is a quick drive from work and is in a "great neighborhood," she reports. Once the deal closed, Fraser and her dog took up immediate residence. Fraser says she’ll definitely use HomePath.com if/when looking to move again. "It’s been a great experience….I’d definitely buy another Fannie Mae home."

Have Clients Like Terri Fraser?
Check out HomePath.com to help them find their financial footing and their first home post bankruptcy. Look around and gather some great options as well as informative aids and resources to prepare them for this next chapter.

Fannie Mae Expands Access to Credit for First Time Buyers

Fannie Mae has reinvigorated its commitment to responsibly help lenders extend affordable mortgage financing to qualified homebuyers. We offer an industry-leading combination of mortgage products, tools, and informative resources to grow sound business opportunities for lenders and sustainable homeownership opportunities for consumers.

Our priority
A safe, responsible balance between expanded access to mortgage financing and the long-term viability of today’s mortgage loans—limiting risk to lenders, investors, homeowners, and taxpayers.

Our goal
Straightforward work process with lenders to make mortgages more accessible, affordable, and sustainable.

Accessibility: Helping creditworthy homebuyers qualify for a mortgage
Fannie Mae works to support lenders as they serve qualified homebuyers who may have difficulty getting approved for a home loan in today’s market. We offer the mortgage products, underwriting guidelines, and lender tools that help limit risk and increase confidence as lenders make approval decisions. We support homebuyers with resources to help them navigate the mortgage process.

Affordability: Limiting the up-front and monthly costs of mortgages
Fannie Mae has established product flexibilities allowing lower down payments and competitive monthly costs—addressing key financial barriers for many homebuyers. Low down payments are supported by other common-sense requirements, including income verification, debt-to-income maximums, a good credit history, and in many cases pre-purchase counseling.

Sustainability: Supporting the long-term success of homebuyers
Fannie Mae wants a homebuyer's mortgage to be affordable on the day they buy their home and for the life of their loan. This is a key requirement for today’s affordable lending, achieved by verifying a homebuyer’s financial readiness, and offering products that fit their financial needs. Combined with tools that help lenders manage risk, Fannie Mae and the industry are able to serve a dynamic housing market.

97% LTV Offering

"Our new 97 percent LTV offering is simply one way we are working to remove barriers for creditworthy borrowers to get a mortgage."

Andrew Bon Salle
Executive Vice President
Single-Family Underwriting, Pricing, and Capital Markets

Working with Your Listing Agent; Seal The Deal

Working well with your Listing Agents is the key to closing your deal and getting your buyers into their home quickly. As with any deal, there are often a number of complicated pieces that can impact the relationship and lengthen the time to close. As you embark on a new selling year, we have prepared tips that will be shared with both Buyer’s Agents and Listing Agents to help foster a good working relationship between the two parties.

Communication is Key
Maintain open lines of communication with your Listing Agent. Nothing can hold up the closing of a deal like phone-tag. Make sure clear expectations have been set on what needs to be completed and how things need to be executed. Fast response time is one of the most important factors to establishing and maintaining a good working relationship.

Make sure all offers are submitting clearly and timely. Follow the steps provided in our on “Offer” article to ensure that offers and contracts are submitted to Fannie Mae expectations. Taking a few minutes to validate important numbers and signatures on documents to ensure they are meeting the previously set expectations will be instrumental in helping your working relationship to flourish and to be successful.

HomePath Short Sale
Check out the Expanded Website!

Fannie Mae has expanded the HomePath® for Short Sales website - a communication tool created to help real estate professionals efficiently complete short sales and resolve challenges directly with Fannie Mae. The new functionality will allow agents to contact Fannie Mae sooner in the short sale process and preempt potential challenges, decreasing the need to escalate concerns further down the road. The website is open to any real estate professional working on a short sale on a Fannie Mae-owned loan.

Through the expanded HomePath® Short Sales Portal that can be accessed through the website, listing agents can work directly with Fannie Mae to:
  • Request list price guidance prior to listing a property
  • View the status of submitted cases
  • Negotiate and receive first lien approval on a short sale directly from Fannie Mae (this feature will be rolled out over the next few months through individual servicers. Visit the new HomePath® for Short Sales website to see a list of participating Servicers.)
To learn more about the Fannie Mae Short Sale process, visit the enhanced HomePath® for Short Sales website. If you would like to learn more about the portal's functionality and access training, view the Short Sales Resources Page.

Get Short Sale Guidance Today; List Price and Contract Tutorial

Keep the following check list handy to make sure you and your client are always clear on how to request list price guidance for their home.

  1. Use the Loan Lookup tool to determine if Fannie Mae owns your client’s loan
  2. Have the homeowner sign the Fannie Mae Homeowner Authorization Form
  3. Contact the servicer to determine a homeowner’s eligibility. In most cases a Borrower Response Package will be required.
  4. Once a homeowner’s eligibility has been determined, register as a listing agent in the Short Sale portal.
  5. Finally: Log into the portal, submit your list price guidance request directly to Fannie Mae.

Submitting a Contract in the HomePath Short Sale Portal

  1. For contracts serviced by a participating servicer, log into the HomePath Short Sale Portal
  2. Submit the contract with terms acceptable to the homeowner into the HomePath Short Sale Portal
  3. If your client's loan is not serviced by a participating servicer, submit the contract directly to the servicer.

Await decisions and communications from Fannie Mae. You will receive notifications if further actions are required or additional documentation is needed.

How does Fannie Mae Estimate Short Sale Values?

Fannie Mae's objective is to help stabilize neighborhoods by selling short sale properties as close to market value as possible. We have a dedicated team of individuals who review the value products received for properties eligible for short sale. There is also a separate team that handles 2nd review requests received via homepathforshortsales.com.

Fannie Mae will provide list price guidance to an agent listing a short sale where Fannie Mae is the investor on the loan. To request a recommended list price, visit the HomePath Short Sale website, select that you are a Listing Agent and select the second step, “Recommended List Price” and “Request a Recommended List Price from Fannie Mae.”

For each short sale listing, we obtain a Broker Price Opinion (BPO) and an appraisal. Our team then uses the following data to estimate values:
  • Appraisal performed to USPAP standards
  • Interior BPO
  • Sales, listing, and pending data available to the appraisers and brokers
When reviewing comparable transactions, we consider characteristics such as age, quality, proximity, home and lot size, home age and property features and condition when selecting and reviewing comparable transactions. In addition, we consider additional characteristics such as:
  • Supply
  • Demand
  • Time of year
  • Number of competing properties
  • Days from List to offer
  • Number of offers on our own book of competing properties and on/offsite influences
  • Competing list prices
  • Recent Closed Sales
After our evaluation, the Short Sale Team will provide a recommended list price to the listing agent.

Who are our New Servicers?

Take a look at all the Servicers that have partnered with Fannie Mae since the launch of the Short Sale portal. If a Servicer isn’t listed, don’t worry - more are coming soon!
  • Bank of America
  • CitiMortgage
  • Nationstar Mortgage
  • Ocwen
  • PNC Mortgage
  • Seterus
  • SunTrust Mortgage, Inc.
  • Wells Fargo Home Mortgage

Short Sale Resources

To access training resources on the short sales process, request list price guidance, or submit a contract for  participating servicers click here: HomePath for Short Sales Resources
If you have any questions about the HomePath Short Sale Portal’s functionality please call: 1-888-894-0205
For other short sale questions or issues that do not relate to the HomePath Short Sale Portal functionality, contact the Fannie Mae resource center 1-800-7Fannie OR the Fannie Mae Short Sale escalation desk

Help Prevent Fraud

Fannie Mae is committed to preventing fraud perpetrated by any party or parties involved in transactions associated with a Fannie Mae REO property. Fannie Mae expects agents to consistently and accurately follow both the letter and spirit of all Fannie Mae policies, procedures, functions, guidelines and philosophies, and to comply with all applicable laws and regulations.

If you are aware of or suspect inappropriate activity in connection with a Fannie Mae property, please immediately report it either by e-mail to Mortgagefraud_tips@fanniemae.com or to our Fraud Tips Hotline, 1-800-7FANNIE (1-800-732-6643).

© 2015 Fannie Mae.