NAR airs grievances with lenders

Realtors: Credit too tight, REO and short-sale policies unclear

The National Association of Realtors is holding a series of meetings with major lenders over the difficulties would-be homebuyers have in obtaining loans, as well as what the trade group characterized as lenders’ problematic policies on short sales and "real estate owned" (also known as bank-owned or REO) properties.

Too often, the Realtors’ trade group complained in a report on its initial two meetings with Bank of America and Wells Fargo, decisions by lenders and loan servicers are made in a "black box" and appear to be inconsistent and sometimes irrational.

"If the lenders and (Fannie Mae and Freddie Mac) disclosed more detail about their policies for underwriting loans, valuing property, selecting brokers for REO listings, and evaluating and approving a short sale, Realtors would be able to close more deals — to the benefit of everyone involved," the report said.