Pam Marron Home Lending

Finally, A Solution for Short Sellers

August 30, 2013 Immediate Release

Media Contact: Pam Marron 727-375-8986


Reference info attached: Senator Nelson/CFPB fix for the short sale code that will help the very people caught up in the short sale/foreclosure lack of appropriate coding



Thanks to an assist from Florida Senator Bill Nelson, short sellers credit can be restored

NEW PORT RICHEY, FL (Aug. 29, 2013) – It appears that a solution to the short sale problem plaguing so many former homeowners for the past several years is about to become a reality.  

After the housing industry suffered major losses in 2007, it caused a negative ripple effect in mortgage companies, banks and lending agencies across the U.S.  Suddenly too many people were living in homes they could no longer afford. The equity had dropped out and now they owed more than the house was worth.  

For many of them the answer was to go through the process of a short sale – where the home was sold for less than the mortgage owed.  

Short seller credit suffered and worse, their short sales were coded incorrectly as foreclosures.  Often the previous owners of a short sale didn’t realize their credit was in jeopardy until they applied for a new mortgage on a home.  To add insult to injury, they also learned that the wrong coding – making a short sale appear as a foreclosure – meant that it would take seven years for them to get another mortgage.  Had the short sale been coded properly, the former home owners would have to wait only two years.  

In Florida alone, more than 40% of the housing inventory is still underwater, so short sales will continue for some time. Sen. Bill Nelson learned about the problem and worked closely with the Consumer Financial Protection Bureau (CFPB) to get the problem fixed. The problem appears to stem from denials of new mortgages in the Fannie Mae underwriting software. Fannie Mae has agreed to a correction that will become effective on November 16th of this year.  (see attachment)

Consumers who encounter this short sale coding problem are encouraged by the CFPB to “Submit a Complaint” at  .  Also, short sales home owners are told to ask their lender for a letter at the completion of the sale indicating that it was indeed a short sale and not a foreclosure.  This letter shows proof to the next lender that the house was sold as a short sale.  

Pam Marron, a senior loan officer in Florida’s Tampa Bay area has sought a resolution to this problem for the last two years.  She hears the stories of past short sellers, sees the damage to their credit and hears frustration of being locked out of the housing market even though they are eligible to purchase again. “The solution is brilliant. We need to promote this important correction to kick start the real estate market and allow those that are eligible to repurchase a home again to do so” said Marron.



•Fannie Mae Fix effective 11/16/13: Fannie Mae Release Notes DU Version 9.1, pgs. 6-7:



•Office of Senator Bill Nelson

Email to:


•Washington, D.C.; United States Senate; 716 Senate Hart Office Building; Washington, DC 20510 Phone: 202-224-5274 Fax: 202-228-2183

•Tampa, Fl.; Sam Gibbons Federal Court House; 801 N. Florida Ave., 4th Floor; Tampa, Florida 33602 Phone: 813-225-7040 Fax: 813-225-7050

•Consumer Financial Protection Bureau

Website: (855) 411-CFPB (2372) TTY/TDD (855) 729-CFPB (2372)

• Pam Marron, Mortgage Loan Officer

Email to: Websites: and

Phone: 727-375-8986 727-534-3445cell


Senator Neslon Emblem

MEDIA ADVISORY:  August 22, 2013


CONTACT(S):  (202) 224-1679; (202) 309-1985

 Ryan Brown, press secretary

Rebecca Autrey, deputy press secretary

Emily Rogers, press assistant

Dan McLaughlin, deputy chief of staff, communications


Lender poised to announce fix for practice of entering misleading information in consumer credit files


Fannie Mae move comes as result of congressional scrutiny initiated by Nelson


WASHINGTON, D.C. – The nation’s largest home mortgage provider is expected to announce any day now that it has found a fix to the problem of computers reporting short sales as more financially harmful foreclosures in many consumers’ credit reports.


The fix stems from a congressional hearing held by U.S. Sen. Bill Nelson in May examining how the lending industry was reporting short sales with the same computer code used for foreclosures in the credit reports of an untold number of consumers. The practice tainted consumers’ credit ratings, and potentially delayed by a number of years their ability to qualify for new loans on purchases like homes or cars.


Banks and credit bureaus have said the reporting problem was caused by an error in the standardized computer software the industry used, which had no special code to report record a short sale – a transaction that was relatively rare prior to the economic downturn in 2008.


Now, according to Nelson’s office, an announcement is imminent that mortgage giant Fannie Mae voluntarily is changing its complex computer software to fix the controversial reporting practice.


“Regardless of the cause, I’m glad Fannie Mae is fixing the problem,” Nelson said today.  “You can’t punish homeowners who went upside down solely because of the economic downturn and loss of value in their home.”


The Florida Democrat’s staff is scheduled to meet with representatives of the lender and consumer regulators today. With Nelson the Consumer Financial Protection Bureau has been pushing for a solution. And U.S. Sen. Claire McCaskill, a Missouri Democrat, has also been key in finding a fix to the problem.


The CFPB oversees consumer financial products.  Nelson represents a state that has ranked among the worst in the nation for the number of homeowners who are underwater because of the late-2000’s recession and financial crisis.







August 30, 2013 by · Leave a Comment

About Pam

Since 1985 as a loan originator, highly experienced with automated loan approvals on DU, LP, and with USDA GUS systems, thorough knowledge and use of FHA loans including 203K rehab, conventional loans including USDA, Homepath and rehab, and VA loans. After 27 years, I STILL love this business!

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