These guidelines apply to many forms of lending, including purchase transactions for a wide variety of properties… Requirements for a General Purchase TransactionĪ purchase transaction, also called a “purchase money transaction,” is a real estate process where the funding is used to purchase the buying of a property or to both buy and remodel or renovate a property. However, Fannie Mae has specific details for loans, and lenders who wish to have their loans purchased by the real estate giant need to make sure their loans fit into specific guidelines. They create greater confidence for lenders, which means more available money for borrowers. By purchasing loans on the secondary market, Fannie Mae ensures a readily-available supply of money for borrowers. This article came from the October 2014-Vol45-2 edition of the bulletin.If you are looking to complete a purchase transaction for a piece of real estate, you’ll need to make sure that you meet specific requirements, especially if the loan is going to be supported by Fannie Mae.įannie Mae, a government-backed company, provides financial support for the American real estate industry, which is generally viewed as an important part of quality-of-life standards. Licensees should be well aware and well versed in the risks posed to their clients, whether buyer or seller, before engaging in a short sale transaction. But they do not make the pit-falls and problems inherent in short sale transactions any less significant. The changes implemented by Fannie Mae are designed to stream-line the short sale process. Fannie Mae, as lienholder, is an interested third party and must approve the short sale therefore Fannie Mae is owed a duty of honesty and fair dealing in the transaction. Licensees should also keep in mind that in a short sale transaction, once an offer has been submitted to the lender, all subsequent offers must also be submitted to the lender, even after an offer has been accepted by the seller. While the attestation is new, the requirement to deliver all offers to a seller is not.Ĭommission Rule 58A.0106(a) requires that all agency agreements, contracts, offers, leases, or options affecting real property be delivered immediately, but in no event more than five (5) days after execution. The affidavit has now been updated to include an attestation from the listing broker affirming that all purchase offers have been presented to the seller/borrower and that no offers have been held or concealed. Since 2012 Fannie Mae has required that all parties involved in a short sale, including real estate brokers, sign that affidavit at the time of closing to confirm that the transaction was conducted at arm’s-length.
Arms length transaction fannie mae professional#
Practically, this change means that all short sale properties now must be listed with a licensed real estate professional who is not the borrower before Fannie Mae will approve an offer.įannie Mae has also announced a change to its Short Sale Affidavit (Fannie Mae Form 191). With the release of Servicing Guide Announcement SVC-2014-09, the mortgage giant announced changes to some short sale servicing requirements which took effect on August 1, 2014.įor all new short sales in which Fannie Mae is the lender, borrowers will be prohibited from listing their own property. Upgrades to the Fannie Mae web portal aren’t the only changes that will affect brokers in North Carolina. Potential clients considering selling property through the short sale process should be directed to consult with a licensed attorney. While this may appear to be a welcome change to the process, licensees should bear in mind that in North Carolina negotiating the settlement of a debt and counseling a seller or buyer on the legal or tax implications that may result from a short sale are both considered the practice of law. Other features rolling out soon will allow brokers to negotiate and receive first lien approval directly from Fannie Mae. With the recent upgrades to its web portal, Fannie Mae now allows real estate professionals to submit problems in short sale transactions directly to a representative. Local Rules for the North Carolina Real Estate Commissionīy Eric A.Commission Guidelines and Other Information.NCAR Residential Property Management Legal Handbook.Commercial Property Management Guides/Other Resources.
Rosters of Exam Candidates and New Licensees.
Arms length transaction fannie mae license#
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