Fannie Mae: Listing Properties Correctly

PMH Financial Vendor Communication

PMH Listing Agents:

Listing a Fannie Mae property correctly is one of the most crucial steps in the sales process. Well written listing remarks can dramatically increase Sales and Closings while reducing Aged Inventory and the potential for a listing transfer. The table below and the linked section of the REO Sales Guide walk you through the factors that contribute to a great listing and we ask that you thoroughly review this material to ensure your listings meet Fannie Mae guidelines.

The table below this message details the terms you should be aware of when entering a property description in MLS. The verbiage listed in the table is either specific language suggested from Fannie Mae in its use, or the language pertains to a sensitive issue that must be addressed in a specific manner.

Please Note: The guidance below is subject to state or county regulations and local MLS requirements. To ensure you use the correct terms, we ask that you review the "Suggested Term/Use" column when entering comments in MLS . If there is no acceptable language listed for the term, we simply ask that you not use, refer to, or enter such information in MLS.

Before the property is listed, pre-marketing is accomplished through the "Coming Soon" status on HomePath.com. Upon the completion of initial services, take at least 6 marketing photos and upload them to your MLS along with a preliminary marketing description. This will ensure that properties in the "Coming Soon" section receive attention even before listing in MLS.

When entering MLS listings, be sure to avoid the following errors.

Less than 6 photos - Listings on HomePath.com are required to have a minimum of 6 photos (including the primary marketing photo). Ensure there are 6 or more photos in MLS. If your MLS is a member of ListHub, the photos will transfer once you enter the MLS number in Equator. ListHub registration is free and the registration instructions are in the REO Sales Guide.
No MLS number - Listings on HomePath.com are required to have the MLS number/MLS Sheet task in Equator. Properties in "Just Listed" status must have the MLS number posted within 1 day. Check all current listings and confirm the MLS number has been entered.
No Marketing Description - Listings on HomePath .com must have a robust marketing description which promotes the positive features of the property. Enter the description in Property Details on the MLS Number/MLS Sheeet task under MLS Sheet Comments in Equator. If your MLS is a member of ListHub, your MLS remarks will transfer to HomePath.com. Always check HomePath.com and confirm the photos, description, and property details transferred correctly.

Additionally, property descriptions should be entered in MLS according to the following linked section of the REO Sales Guide:

Listing and Managing the Property

If you have any questions about the terms below, or the process of listing a property in MLS, please contact your PMH Financial Asset Manager

Term	Potential Issue with Term	Suggested Term/Use
Mold	To determine if Mold is present, testing must be done to determine the cause of the discoloration, so we discourage the use of the term Mold.	Brokers must refer to this environmental issue as "Discoloration" rather than "Mold" in the marketing description on HomePath.com if mentioning this in the comments.
Foreclosure, Bank Owned, or Bank Repo	Fannie Mae discourages the use of terms such as "foreclosure," "foreclosed," "bank owned," or "bank repo" in the marketing description on HomePath.com.	Please use the terms "Corporate Owned" or "Fannie Mae HomePath Property."
Enter at Your Own Risk	Fannie Mae discourages the use of language that may unnecessarily portray a listing in a negative manner, or deter potential buyers from submitting an offer.	Language describing a major property issue should only be used in MLS in the most extreme and proven cases. In these instances, please only enter the basic facts about the issue.
Seller Will Pay	Although Fannie Mae does negotiate (and periodically offers selling incentives, e.g., 3.5% Sales Incentive, Appliance Incentive, Seller Contributions toward CCs, etc.) with a buyer to cover a certain percentage of closing costs on acceptable offers, verbiage that specifies a specific amount will be paid by the seller should not be used in marketing descriptions on HomePath.com. For example, please do not use language such as "Seller will pay up to $4,000 towards closing costs," or "seller will pay 6 months past due HOA fees."	Approved incentive language is encouraged in MLS listings. Additionally, language such as "Seller contributions toward Buyer's Closings Costs may be available," is allowed as it encourages interest without a guarantee or explicit offer of a specific amount.
Pre-qual	Referencing the requirement for a pre-qual or pre-approval before the submission of an offer is inconsistent with Fannie Mae policy.	If pre-qual ification language needs to be used, Fannie Mae prefers that the following language be used instead: "It is strongly encouraged that an offer includes proof of funds (if cash offer), or pre-approval (if financing) and is a requirement for seller's final acceptance."
Lockbox Code	Disclosing the lock box code or combination in the marketing description on HomePath.com is not acceptable and may cause security/vandalism concerns.	There is no acceptable language for the entry of a lock box code/combination in MLS. This includes private remarks.
REO Compliance Fee, REO Fee, or Processing Fee	Fannie Mae prohibits the use of verbiage that indicates a "compliance fee," "REO fee," "application fee," "transaction fee," or any similar fee charged by listing agents. Fannie Mae's policy on such fees is briefly outlined below (this is based on previous communications regarding such fees): Under NO circumstances shall Broker be entitled to any compensation under this Section 1F which exceeds the net commission due Broker, any commission sharing arrangements resulting from a multiple listing or cooperative listing agreement or otherwise. The net commission due Broker shall be determined according to any applicable rule of the local Multiple Listing Service, Real Estate Board, or other similar local agency, or by local custom.	There is no acceptable language for the entry of this type of fee language in MLS.
FHA Financing	We discourage any predefined judgments in the marketing descriptions on HomePath.com as to whether a property will be eligible/ineligible for FHA financing, the property condition may restrict/affect FHA financing, or that FHA/VA financing offers will not be accepted.	There is no acceptable language for the entry of such specific financing terms or judgments in MLS.
Earnest Money Required or Deposit Required	Referencing the requirement of earnest money, deposits, or specific deposit amounts, e.g., $500 deposit, $1000 deposit, $2,000 deposit, etc., before submission of an offer is inconsistent with Fannie Mae policy.	There is no acceptable language for this type of entry in MLS.