Recently, Fannie Mae began to actively seek out brokers listing more than 30 REO listings from any single Fannie Mae source which understandably is seeing opposition by many large brokerages as well as the National Association of Realtors, according to Keller Williams’ CEO, Mark Willis.
Willis wrote this week to all of Keller Williams associates:
“Dear Associates –
We’ve recently been alerted to heightened enforcement from Fannie Mae of a per-broker limitation of 30 active REO listings from any one Fannie Mae source, and want to assure you that we have been diligently working behind the scenes on your behalf to address this issue.
While we understand that this policy is designed to curb abuses and ensure that all Fannie Mae-backed REO listings receive the necessary attention to detail, we were quick to point out to Fannie Mae’s leadership that the real estate industry’s most efficient REO specialists have invested heavily in people and systems. As we all know, efficient disposition of REO properties is critical to reestablishing stability within the real estate market, and it serves no one to severely curtail the operations of the most successful producers who understand the high-volume, low-margin nature of the REO business.
We also want to dispel the rumor that the National Association of REALTORS is in support of this limitation. Our sources at NAR have indicated that they share our conviction that top-producing REO agents are an integral part of the solution, and that dismantling their businesses in the interest of opening the field to more players serves no one.
Click here to find the letter that we have sent to the President and CEO of Fannie Mae that outlines our position. We look forward to working closely with Fannie Mae in promoting the highest standards quality and professionalism, and will keep you in the loop as this matter develops.
Yours in leading the way,
In a letter to Fannie Mae, Willis wrote, “We are very concerned that due to the high volume, low margin nature of the REO business, the imposition of these limitations would serve to drive real estate professionals away from the market to a greater extent than it would draw in well-qualified new players.”
“I was dumbfounded…”
A more strongly worded opinion was aired by Kansas broker, Chris Lengquist, “Frankly, I have to tell you I was dumbfounded that this rule was even in place! REOs are low profit, exasperating work. Professional real estate agents smart enough to put together a team of 3-8 people to review, list and successfully sell foreclosed property have to deal with governmental minions who need to leave by 4:30 each day because they cannot stand to work a minute’s overtime. Does it occur to Fannie that this is survival of the fittest?”
As a real estate professional, do you think it makes sense to make a rule that applies to the entire industry? Does raising enforcement help or damage the REO practice and real estate sector overall, or is this an appropriate measure? Tell us in comments your thoughts.