January 3, 2012:
On December 27, 2011, NAR President Moe Veissi submitted NAR’s comments to the Federal Housing Finance Agency (FHFA, the conservator of Fannie Mae and Freddie Mac (the GSEs)) on future mortgage servicing structures and servicing compensation for single-family loans to enhance competition in mortgage servicing and origination.
NAR urged FHFA to proceed with caution in the restructuring of compensation for loan servicers and commented that poor service from entities with seemingly little commitment to resolving difficult situations has resulted in large numbers of foreclosures. REALTORS® believe the best opportunity to reduce costs to taxpayers and assist in the stabilization of housing values and neighborhoods is to respond more effectively to, and provide more resources for, pre-foreclosure efforts such as loan modifications and short sales.
NAR believes a compensation structure that allows community lenders and servicers to serve the needs of their communities, but ensures that sufficient resources are dedicated to pre-foreclosure efforts, is the preferred solution for all involved parties.