HUD Delays Dual Agency Restrictions


This is another case of the Government “Fixing” a problem that they had no evidence of it even existing. This rule would have produced wide spread havoc in the short sale market. At least they caught their foul-up in time to curtail the damage. Please read the article below.

The FHA Condos Approval Company, Inc.

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HUD has delayed its prohibition of dual agency listings on short sale properties according to a statement made this week by the National Association of Realtors (NAR).

The HUD prohibition had first been outlined in a July letter to mortgage servicers describing new anti-fraud requirements for short sales and deed-in-lieu of foreclosure transactions. The original policy was slated to go into effect October 1, 2013.

In response, NAR President Gary Thomas wrote a letter to HUD outlining NAR’s concern with both the reasoning behind the prohibition and the possible consequences of it.

“NAR has been told that the policy was implemented because the HUD Inspector General detected fraud and abuse in the pre-foreclosure sales process; however, no statistics or reports were provided to NAR detailing short sale fraud by real estate agents,” the letter said. “NAR takes fraud very seriously…If there is evidence of fraud by our membership, we would like to be part of an effort to develop policies that effectively address these issues.”

Thomas’s letter also raised concerns about how a prohibition on dual listing would affect agents’ and brokers’ ability to effectively serve their clients.

To read the complete article please use the link below.

Dual Agency Restrictions

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