On July 3, the FHFA announced that the winning bidders in a real estate owned (REO) pilot initiative have been chosen and transactions are expected to close early in the third quarter. The FHFA launched the pilot program in late February, and bids were solicited from qualified investors to purchase approximately 2,500 single-family Fannie Mae foreclosed properties. FHFA Release.
On February 27, the FHFA announced the first pilot program transaction under the Real Estate-Owned (REO) Initiative, targeted to hardest-hit metropolitan areas (Atlanta, Chicago, Las Vegas, Los Angeles, Phoenix, and parts of Florida). Prequalified investors will be able to submit applications to demonstrate their financial capacity, experience, and specific plans for purchasing pools of Fannie Mae foreclosed properties with the requirement to rent the properties for a specified number of years. FHFA Release.
On February 1, the FHFA announced the first step of its REO Initiative targeted to hardest-hit metropolitan areas which will allow qualified investors to purchase pools of foreclosed properties with the requirement to provide a specific rental period. Interested investors will have the ability to pre-qualify to bid on transactions in the initial pilot phase and in subsequent phases. FHFA Release. REO Asset Disposition Page. Investor Pre-Qualification Process.
On January 4, the Fed released a white paper entitled “The U.S. Housing Market: Current Conditions and Policy Considerations” which discusses proposals for housing market and mortgage servicing practices, including a pending federal agency proposal for an REO to Rental program, servicer modification and foreclosure practices, loan underwriting standards and issues related to loan put backs by the GSEs. Fed White Paper.