February 6, 2012
On February 1 the Federal Housing Finance Agency (FHFA) announced that it is now accepting applications for investors who wish to bid on transactions in the initial pilot projects to be offered in the Obama Administration’s plan to expedite the disposition of foreclosed properties held by Fannie Mae, Freddie Mac, and FHA.
Multiple pilots will involve pools of various types of assets, including rental properties, vacant properties and non-performing loans, with the first pilot coming from Fannie Mae in some of the hardest hit foreclosures areas in the nation. The pre-qualification process will ensure that bidders have the financial capacity and operational expertise to manage properties in a way that will contribute to the stabilization of communities that have been hard hit by foreclosures.
NAR continues to communicate with FHFA and HUD on its concerns about the potential damage to housing markets that indiscriminate bulk sales and conversion to rentals can have. As the pilot projects are solicited and chosen, NAR will continue to make its strong concerns known to ensure that any long term program is carried out in a manner that will facilitate recovery in housing markets and communities.