On October 1st HUD planned on implementing a new policy which would have prevented dual agency agreements in FHA pre-foreclosure transactions.
HUD announced this policy was going to be implemented because the HUD Inspector General detected fraud and abuse in the pre-foreclosure sales process.
NAR has been working closely with HUD on this policy and is in discussions with agency officials seeking clarification of the rule. NAR submitted a letter to FHA Commissioner Galante expressing concerns with this new policy and how it will directly impact homeowners.
Particularly, NAR noted that this new policy will put homeowners at greater risk of falling into foreclosure if they cannot find a real estate agent, especially one who is knowledgeable about the short sale process, to list their homes.
To assist in NAR in its ongoing discussions, Pacific Southwest Association of REALTORS President Jeff Campbell submitted a letter to HUD regarding this proposed policy and the disruptive effect its implementation would have on our local markets. A copy of PSAR 2013 President Jeff Campbell's Letter to Assistant Secretary For Housing Carol Galante may be found here.