On August 21, 2012, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac would be issuing new guidelines to enhance and streamline the short sale process.

Servicers of Fannie and Freddie loans are allowed to approve short sales for borrowers with severe financial hardship with limited documentation, provide borrowers who are current on their loan the option for a short sale if they face a financial hardship — such as divorce, long distance employment transfer, or a severe disability — and provide valuation guidance to real estate agents early on in the short sale process.

Servicers were required to implement the changes by Nov. 1, 2012.