As reported on RealEstateInsiderNews.com the FHFA pilot program to convert Fannie Mae REOs into rentals is a huge success. The initiative is part of the Obama administration’s goal to put a floor under falling home values. Fannie Mae and Freddie Mac usually sell their REOs one at a time. The FHFA is trying to decide whether or not selling homes off in bulk will help reduce losses.
The pilot program to pool nearly 2,500 single-family homes ( homes primarily located in Atlanta, Chicago, Las Vegas, Los Angeles, Phoenix and parts of Florida) REOs held by Fannie Mae, with the goal to sell them to investors in bulk, who could then rent them out. The investors chosen for the pilot initiative went through a “rigorous evaluation process,” the regulator said. FHFA assessed the investors financial strength, experience with asset management and their ability to oversee rental properties.
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“We are pleased with the response from the market,” FHFA Acting Director Edward DeMarco said in a statement. “FHFA undertook this initiative to help stabilize communities and home values in areas hard-hit by the foreclosure crisis.”