ALTA, along with the National Association of Realtors, has persuaded Freddie to amend its requirement that mortgage servicers force closing and escrow agents to sign arm's length affidavits when closing a short sale. Months of negotiations finally paid off on Friday as Freddie Mac made most, but not all, of the changes that ALTA requested.
These revisions clarify that (1) statements made in the affidavit are made to the best of each signatory's knowledge and belief and (2) that each signatory is liable for his or her negligent or intentional misrepresentations, but not those of other signatories to the affidavit. The changes also include (3) guidance with respect to the short sale affidavit as well as the information that must be included in the affidavit.
