Appealing short sale commissions to Fannie Mae

In February, Fannie Mae instructed its servicers to honor the agent-negotiated commission on a short sale, unless the commission exceeds 6 percent. This instruction is applicable to properties where Fannie Mae is the investor.

According to a Fannie Mae announcement, REALTORS® who are working on a short sale and believe a servicer is negotiating their commission outside the bounds of its announcement, should appeal the servicer’s decision in the following manner:

1. Confirm that the loan is owned or guaranteed by Fannie Mae. With written permission from the homeowner (or in their presence), use the Fannie Mae Loan Lookup tool Alternatively, the homeowner can call Fannie Mae's Resource Center at (800)-7FANNIE (8 a.m. to 9 p.m. Eastern Time).

2.    If the loan is owned or guaranteed by Fannie Mae, provide a copy
of Announcement 09-03 to the servicer and negotiate
an appropriate commission based on the listing agreement
(up to 6 percent).

3.    If the dispute is not resolved, contact Fannie Mae at
(800)-7FANNIE. Be prepared to provide the property address,
name of owner, and Fannie Mae loan number, if available.

Note: Servicers must continue to obtain any third-party approvals (i.e., private mortgage insurers) and those approvals may impact commissions.