Short Sale Soundoff: FHFA announces next steps in REO Pilot Program
The FHFA announced
yesterday that the winning bidders in a REO pilot initiative have been chosen
and transactions are expected to close early in the third quarter. The FHFA
said that market response has been robust with strong qualified bidder
interest.
“FHFA undertook this
initiative to help stabilize communities and home values in areas hard-hit by
the foreclosure crisis,” said Edward J. DeMarco, Acting Director of FHFA. “As
conservator of Fannie Mae and Freddie Mac, we believe this pilot program will
assist us in achieving our objectives and help to maximize the benefit to
taxpayers. We are pleased with the response from the market and look forward to
closing transactions in the near future.”
FHFA launched the pilot
program in late February, and in the second quarter bids were solicited from
qualified investors to purchase approximately 2,500 single-family Fannie Mae
foreclosed properties. Fannie Mae offered for sale pools of properties in geographically
concentrated locations across the United States.
Investors were
qualified to bid after a rigorous evaluation process and were evaluated on the
basis of several factors, including financial strength, asset management
experience, property management expertise, and experience in the geographic
area.
C.A.R. is disappointed
that the FHFA ignored overwhelming economic data showing that such a program is
not necessary, especially in California where inventory levels are
exceptionally low, and may potentially harm the housing market in certain
areas.
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