March 5, 2012
On February 29, key members of NAR committees and leadership met with the Federal Housing Finance Agency (FHFA) and other federal agencies to address the REO to Rental Initiative announced earlier in the week (see separate item). The purpose of this meeting was to express NAR's ongoing concerns about the implementation of the plan to dispose of government owned foreclosed properties by making them available for rental.
NAR volunteers, led by NAR Vice President for Government Affairs Scott Louser, expressed their concerns that deeply discounted bulk sales will work to lower overall property values in locations where they occur. FHFA indicated that they are in agreement with that concern and will not approve sales that would have that effect. Concerns were also expressed about the lack of sufficient inventory in many areas thus making the REO Initiative unnecessary.