According to the New York Times, the Federal Housing Finance Agency will be focusing on a process that speeds up short sales.
Short sales have become a greater factor in today's market, as the number of distressed properties has increased significantly since the housing crisis, the paper notes. Further, many homeowners in today's market prefer short sales over foreclosures because they are less costly and more efficient.
Data from CoreLogic shows short sales comprised 14 percent of existing-home sales for the month of April, compared with 12 percent for all of 2011.
The FHFA has recognized the increasing number of short sales and beginning June 15 will require Freddie Mac and Fannie Mae to respond to short sales buyers within 60 days on their final decision.
New regulations by the Agency will also require a response within 30 days to application submissions. The faster response time is expected to improve the short sale process.
"Expedited sales as a result of the new directive will benefit the entire housing market," Michael McHugh, president and chief executive of Continental Home Loans, told the Times.
