The Federal Housing Finance Agency (FHFA) issued new short sale guidelines in August 2012, as part of its Servicing Alignment Initiative. Under these guidelines, Fannie Mae and Freddie Mac will consolidate their existing short sale programs into one standard program effective November 1, 2012. The new program will permit homeowners to sell their homes in a short sale even if they are current on their mortgage as long as the borrower has an eligible hardship.
The Credit Union National Association (CUNA) submitted a letter to the FHFA regarding the short sale guidance. They encouraged the FHFA to limit the application of the new guidelines to short sales only and not apply them to other types of borrower situations. CUNA urged the FHFA to direct the GSEs to offer second lien holders the maximum possible amount up to the $6,000 limit, and also urged flexibility on that amount in some limited circumstances.