3 Reasons Fannie Mae's Lockbox Requirement is Good News

You've probably heard the news. As of July 1, Fannie Mae will be requiring lockboxes for all of their properties. But what does this mean for you as a broker? Well, it's far from catastrophic. Instead of looking at this new requirement as just another logistical headache, you might want to see it as an opportunity for growth. After all, to put it simply, electronic lockboxes are good.

It's important to clarify that Fannie Mae's requirement is also better for real estate professionals and consumers as well. Why? Well, we spoke with Greg Sheldon, National Sales and Marketing Manager of SentriLock (a leading company that provides electronic lockbox solutions for many of our readers) to get a better understanding of the "plusses" for brokers.

1. Improved Security
"Improved security is clearly a top reason to use an electronic lockbox," says Mr. Sheldon. "It's certainly a driving factor behind Fannie Mae's choice. Use of our lockbox means that all accesses to the house are recorded, time stamped, and stored on our Web servers for easy reporting. With the old combo locks, there was no telling who entered a property and when they entered it. If there was any damage to the property, there was no telling when it occurred and thus no telling who was responsible."

"The other major issue with combo boxes is that, once someone has the code, the can use it any time or, even worse, share it with unauthorized individuals," Mr. Sheldon continues. "We hear stories like this all the time."

2. Happier Homeowners
Homeowners like lockboxes - and for good reason. They appreciate that electronic lockboxes offer improved security. They also like that electronic lockboxes look more professional than an ungainly, awkward combo lock. And, best of all, they appreciate that an electronic lockbox gives them control over who has access to their home and when they can access it.

"People appreciate that they can essentially place a 'Do Not Disturb' barrier on the lockbox," explains Mr. Sheldon. "This means that they can block access to the REALTOR® NXT Lockbox on their home by using a special code. Until they are ready to receive visitors, they have complete and utter privacy and security. Homeowners appreciate that this gives them the opportunity to eat dinner in peace or feel safe during a vulnerable time, like when they're in the shower or kids are home alone."

3. Additional Broker Features
"I think it's also important to mention that electronic lockboxes can make brokers' lives easier," Mr. Sheldon says. "Our lockboxes can be integrated with the other tools that help you run your business. This includes call centers and scheduling software (such as Showing Time or Centralized Showing Service).The REALTOR® NXT Lockbox also gives REO brokers more control over their property. They are the source for One Day Codes for appraisers, out-of-area agents, or other one-time visitors."

In addition, the special features of electronic lockboxes allow for the gathering of essential data. With this data, reports can be generated that may help brokers improve their sales process. The reports can also be used to show progress to homeowners.

Understanding Requirements
For the time being, Fannie Mae is only requiring that the electronic lockbox be placed in the primary location for marketing purposes (i.e. the front door). Other entrances to the home can have a mechanical combination lock. Those are the doors that Fannie Mae's contractors, inspectors, and employees will use to access the home. However, Greg Sheldon predicts that, after more agents see the benefits of using an electronic lockbox, they'll may want to use them on all entrances to their properties.

If you want to learn more about your options for electronic lockboxes, you can review our product directory. You can also contact your MLS to learn more about technology and implementation.