Fannie Mae Approved REO Vendors: Agents, Brokers & Contractors
Fannie Mae executes a Master Listing Agreement with either the principal broker or owner of company to which the agent chosen to manage its REO listing belongs. This document contains the details defining the relationship between Fannie Mae and the broker. It must be executed and be on file before FNMA can proceed to assign a HomePath REO property listing to a listing broker.
A REO agent handles pretty much everything on a Fannie Mae REO home till it is successfully sold. The agents and brokers that handle listings are chosen from those service provider pre-screened and signed-up by Fannie Mae. A listing agent is primarily chosen based on their proximity to the property, while also factoring their professional’s experience and ability. As a broker plays a critical role in the sale of a REO property, Fannie Mae places due importance on their selection before assigning a REO home for listing. The inventory of REO homes FNMA owns are distributed in a balanced way between all its service providers taking their past performance, experience, qualifications and ability into consideration.
Fannie Mae REO Sales Guide
The sales guide is a great reference for listing broker managing the selling of FNMA REOs. This guide is frequently updated to keep all REO vendors informed about any changes to the procedures commonly involved. The Section I of the Fannie Mae REO Sales Guide explains all the procedures a REO agent or broker must follow when handling a property assigned to them for listing and selling. Fannie Mae outsources some of its repossessed REO homes to an external Asset Management Provider (AMP) for management. These AMPs also employ REO brokers to handle Fannie Mae HomePath listings.
FNMA plans its REO property marketing strategy with the inputs from AMPs, listing brokers, BPOs and appraisers. The ideal strategy will aspire to minimize Fannie Mae’s losses while having little impact on the local real estate market in which the property is located.
To successfully sell off the repossessed homes its owns, Fannie Mae needs a thorough and effective sales strategy. They rely on their REO brokers to provide them with as much relevant information as possible about the property and the local market. The more it knows, the better will be its ability to suitably price, which leads to a quicker sale.
Any real estate broker or a company can sign-up as a prospective supplier to Fannie Mae REO department provided they meet the following minimum qualification requirements. All suppliers need to register and submit all necessary documentation required by FNMA. The company signing up to be a REO vendor must have been in busines for at least one year prior to application. The REO vendor must have generated revenue for the year with no more than 70% coming from Fannie Mae directly. A professional office with a registered address is also required. This information is necessary to submit a complete reo vendor or agent application to FNMA. A W-9 with tax info along with a certificate of insurance (Errors and Omissions) is also required. The insurance coverage must be appropriate for the amount and type of business to be performed on REO properties. The REO vendor is required to have at least three employess being paid on W-2 and not 1099. All contractors, vendors, appraisers, agents, brokers, contracts and consultants who seek to provide REO services to Fannie Mae must adhere strictly to its procedures and guidelines.