New Fannie Rekey guidelines? - REO Property Preservation Forum
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post #1 of 11 (permalink) Old 05-30-2013, 07:24 PM Thread Starter
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New Fannie Rekey guidelines?

Hey. I know this is my 1st post. Ive been a browser for quite some time. I work with a couple local fannie brokers and just got memo that as of June 1st the current keycode will not be used and all new rekeys will be needed to be one of a kind. Anyone else in this situation and stocked with the fannie codes like myself? Lol
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post #2 of 11 (permalink) Old 05-30-2013, 07:51 PM
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You should be able to use your current stock for other clients...
But they are also requiring that a lock smith perform the rekeys...I can't wait to see how this plays out....

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post #3 of 11 (permalink) Old 05-30-2013, 08:04 PM
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We are very fortunate to have a key cutter here at the shop. Plus myself and a couple guys can rekey locks pretty fast. For sure will be an extra pain in the @ss but we will manage. I dont think this will last though. It will last about as long as the SUPRA lockboxs that were supposed to go on HUD houses if anyone remembers that.

[QUOTE. reenerimage;47884]Hey. I know this is my 1st post. Ive been a browser for quite some time. I work with a couple local fannie brokers and just got memo that as of June 1st the current keycode will not be used and all new rekeys will be needed to be one of a kind. Anyone else in this situation and stocked with the fannie codes like myself? Lol[/QUOTE]
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post #4 of 11 (permalink) Old 05-30-2013, 09:47 PM
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I agree, hopefully this is like Supra boxes and never happens. Has anyone gotten a memo on this form their national clients? Any ideas on pricing? Have seen nothing about this from SG so far ....
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post #5 of 11 (permalink) Old 05-30-2013, 11:54 PM
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The reason for this "no master key" lockset is 2 fold.

1) It eliminates having to do the re-rekey before the closing (for those not familiar we changed the locks on obtaining the home and then removed those locks 5 days before closing with a generic lockset)

2) There has been instances where prior contractors has "helped" themselves into the home after the house has sold and occupied by the new homeowners---who was suppose to have had the locks changed by closing but didn't.

What I see as the problem is this: Fannie is trying to get the contractors to get away from the Nu-set/kwikset type lock and use a contractor grade or better lockset BUT the pay is not increasing. They still want to pay the for lockchanges on the initial and eliminate the closing rekey pay. We had 2 realtors tell us today that their buyers are wanting Schlage or Weiser locktypes. I saw nowhere where they can ask for any "certain" type of lock?

Yes you have to be licensed as a locksmith if your State requires. If the State does not require you are suppose to be bonded in your State.
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post #6 of 11 (permalink) Old 05-31-2013, 04:08 PM
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Here is what I got from one of the Brokers we work with...

A new directive involving FNMA for those of you who rekey. This could really be an issue if they require a licensed locksmith among other potential problems. My friend who does a lot of FNMA rekeys forwarded this to me and wrote:
1) locksmiths are not going to want to do this for a flat rate
2) most of the door hardware on these properties is either non matching or crap
3) how is FM going to log, track and manage key codes ?

I believe this is a knee jerk reaction to :

1) complaints from buyers over the $150 buyer rekey fee
2) the current key code has been in place for about 2 years....I'm sure EVERYBODY has a key
3) lack of written standards for initial rekey services has led to great inconsistency....

************************************************** **

Weekly Listing Agent Message

In This Week's Message:

Rekey Update
Updated Whirlpool Forms & Information - URGENT!
Please note: You may receive additional/separate communications regarding Equator not included in these Weekly Listing Agent Bulletins. It is important to read and follow these targeted messages.

--------------------------------------------------------------------------------
Rekey Update

Effective for all new assignments received on or after June 1, 2013, Fannie Mae is discontinuing the use of a Master Key. The following instructions will detail your role in this implementation process.

Listing Agent responsibilities:

All properties assigned on or after June 1, 2013 should be rekeyed to a random key cut. Only new assignments will be rekeyed to a random key.
Each property must have a random key cut and agents are prohibited from creating their own master key.
Rekey services (initial and subsequent) are required to be completed by a professional locksmith service, properly licensed where required by state or municipalities. If the distance to the property involves an excessive trip charge from a professional locksmith, a local contractor may be used if licensing is not required. All locks should be rekeyed rather than replacing the lockset, unless the lockset is in poor condition. Decorative or upgraded locksets should be preserved to enhance marketing. Replacement locksets should match the adjacent fixtures.
Consistent with the REO Sales Guide, agents are allowed $150 per unit for the initial rekey and all door locks and deadbolts are to be rekeyed. Padlock replacement or gate lock rekey is included in this expense. An expense above $150 per unit still requires Sales Representative approval. In redemption/confirmation states, two rekeys are allowed on vacant properties without approval, provided each rekey is no more than $150 per unit. The Property Management Company is also allowed two rekeys: A rekey when the lease is effective and a rekey when the tenant vacates.
Consult your Sales Representative for approval if you believe that a property currently on a master key would benefit from the security of a random key.
Properties that are keyed to a random key cut will not be rekeyed before closing and, therefore, there will be no invoice for rekey presented to the settlement vendor. During the transition, those properties still on a master key must be rekeyed in accordance with Section 23 of the Real Estate Purchase Addendum. Notify the settlement vendor in advance of closing and communicate whether there will be an invoice presented for rekey.
Lockbox Reminders

As described in the REO Sales Guide regarding lock box combinations: you must use a numerically coded lockbox and the last digits of the loan number will be used for the combination. For example, with loan number 4005761906:
Lockbox requiring 4 digits - combo is 1906
Lockbox requiring 3 digits - combo is 906
You are still required to use a separate marketing lockbox on the primary entrance unless there is only one door and no other secure place to attach a second lockbox.
The marketing lockbox must be an electronic box if supported by the primary MLS in the area. If not electronic, then the combination must be random. Agents must not create a standard combination.
When possible, place the secondary lockbox on a secure location in front of the gate. A secure location would be the water hydrant, gas meter, attached post, etc. This facilitates access to the yard by field services, and other vendors such as the swimming pool company, and Fannie Mae ordered inspectors. It is your responsibility to place the lock on the gate, not the field services vendor.

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post #7 of 11 (permalink) Old 06-08-2016, 06:13 AM
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post #8 of 11 (permalink) Old 06-08-2016, 07:29 AM
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Time for us all to learn how to use bump keys.
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post #9 of 11 (permalink) Old 06-08-2016, 08:05 AM
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Quote:
Originally Posted by Newbie View Post
Time for us all to learn how to use bump keys.
I am not gonna lie, I used that method A LOT when we were in P&P. Half the time the keycodes were never correct cuz these half assed contractors would use home depot locks instead of contractor coded locks. It is pretty simple lol
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post #10 of 11 (permalink) Old 06-08-2016, 11:04 AM
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Quote:
Originally Posted by Newbie View Post
Time for us all to learn how to use bump keys.
I prefer to actually pick the lock over the bump method. There are many different configurations for the locks, and you need to know what key to use. That's mostly done by starting the picking process (Counting the pins in the lock). Some of you may be really good at doing this just by looking at the lock, and the bump method might be better for you. Me, I just carry an electric lock pick tool and get it done, without worrying about what key to use.
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