We’d like to pass along the latest Freddie Mac Bulletin that addresses real estate broker commission negotiations. The language we’d like you to be aware is at the bottom of page 3 and reads…
Negotiation of Broker Real Estate Commissions on a Short Payoff
Chapter B65, Workout Options, has been updated to provide Servicers further guidance regarding the negotiation of broker real estate commissions on a short payoff.
Unless a real estate broker’s sales commission exceeds 6% of the property sales price, Servicers must not, as a condition of the Servicer’s acceptance of an offer, renegotiate the real estate broker’s sales commission to an amount that is lower than the amount that was originally agreed upon between the broker and the Borrower. In the event the sales commission exceeds 6%, the Servicer must renegotiate the commission to limit it to 6% of the property sales price.
Servicers must continue obtaining all applicable third party approvals and ensuring that the transaction is arms-length in accordance with the requirements specified in Section B65.37.
Section B65.37 has been revised to reflect this change.
Here’s the bulletin in it’s entirety – just in case you need to bring it to anyone’s attention.
