Fannie & Freddie

I have been working with REOs for a few years now and have been trying to get my foot in the door with Fannie & Freddie, but have been told that since other agents in my office work on those accounts, they will not allow another agent on board.  Does anyone have any insight to this?

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  • If you are going to do REO and commit to it, you need to be the broker.

    Getting set up with all the REO accounts is work enough without having to do it all again if you switch brokerages.

    • Hi Rick,

      Many of the REO AMs and platforms are agent loyal not Broker loyal. They will follow the agent not the Broker or company owner.  If it is an REO application in the  Broker's name or Company owners name , well then you can not as an agent sign up for that account and that will be an account that stays with the brokerage if the agent leaves. Freddie, Fannie and HUD are about the only REO accounts that stay with the company owner when the agent or even the Broker for the company leaves. There may be a few others but as I mentioned most go with the agent.  If an agent leaves a Brokerage the procedure is not much more than the yearly updates required with REO accounts to move the account to another Brokerage.

  • Fannie Mae doesn't approve a particular agent, they approve the company. It is then up to the company to assign the agent or agents they want to have work those properties. You can't apply to them as an agent individually.  You can however sign up with their REO outsourcing companies (there is a list of them on the Fannie Mae website). If your company doesn't currently list Fannie Mae then get with your broker and have him/her sign the company up. I was given this information directly by Fannie Mae reps.

    • Anita are you currently a Fannie Mae Broker? I recently received a application I completed and submitted back to them. I'm hoping for the best!

      • No Michael I am not. My company was at one point but we are no longer. Are you the broker for your company?

        • yes I am the Principal Broker of my company.

  • Ok here is the straight "scoop" on this. The rules are simple. The company owner is the contact for all of the assignments. In other words the Freddie Mac account belongs to the owner of the company. If the broker is the company owner then the account belongs to the broker. If the broker is not the company owner  the account belongs to the company owner.This prevents unethical behavior and is really a good policy. There are other sound reasons for this policy that are beneficial to Freddie Mac. 

    There is one "adult" user for the account. This is either the Broker or the company owner if the owner is a licensed Real Estate agent. The "adult user" can have child users on the account. This would be other agents that assist with the properties and all of the tasks and responsibilities.Any Freddie Mac account can have multiple agents in the same office, all as child users. It is really like traditional Real Estate. All listings and clients belong to the Brokerage not the individual agents. At least in the State I am in it is that way. So to clarify the account holder can let any and all of his/ her agents participate in Freddie Mac listings if they go through the approval process required by Freddie Mac and are listed by the
    Adult user as child users on the acccount.

    As far as becoming an agent for Freddie Mac, they assign on the need in the "territory". If they have enough Brokerages for the area already they will not hire new ones until one drops off or they have a large increase in inventory. Getting a listing that is a Freddie Mac asset from an outsourcer does not get you into FMs agent network.  Most outsourcers or asset management companies  require REO experience of no less than 2 years to be considered for their agent network.

    HUD is much easier for agents to be considered in their agent network.

    Hope this answered the question for you.

    • Almost everything Barbara Scarbrough said is correct there are some other things and errors in her statement that need to be addressed.

      The "Childs' are limited to the amount of listings they have assigned you, the maximum. Your Broker  or Company Owner must has financial reserves for managing the properties including none major repairs. When I was hired they required proof of $2,000 per listing so you are able to pay for all utilities, yard maint., Under $2,000 repairs of any kind. As far as I know they haven'y changed this and it is a major burden for most smaller Brokers and companies.  They will dismiss any Broker not paying their bills in a timely way and they do audits.

      An individual agent cannot get on with Freddie Mac with out the broker. 

      • Roy perhaps some things have changed recently. I don' think I miss spoke or made an error in what I posted.

         I met personally with the RAM. I  was told that if I have child users to assist, I would receive more assets. Up to of course a maximum and also while proving my ability to meet the financial requirements. I also spoke to an Broker owner in our area who has been with Freddie M for years. He has a "team" of 5 and 85 listings. As he added child users he was assigned more listings. Another agent far North of me has 2 child user and 40 assignments. So it may be the policy has changed since you last checked on it.

        The new policy for amount of responsibility is 5000.00 per property. This would be up to 5 K for a capitol repair. Utilities, maintenance and preservation are not included in this 5 K. These are the responsibility of the agent on each asset as the property requires it.  These are to be approved by the asset manager per each occurrence,  paid as required  by the agent and then submitted for reimbursement.

  • I received an e-mail from Fannie Mae asking me to register.  The link to complete the registration would not allow you to complete the information. 

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