The Obama administration is seeking ideas from investors on how to convert thousands of foreclosed properties owned by government-backed entities into rental homes.
The Federal Housing Finance Agency, the regulator of Fannie Mae and Freddie Mac, U.S. Treasury Department and the Department of Housing and Urban Development announced the solicitation in a press release today.
The goal is to shrink the pool of foreclosed properties for sale and boost stagnant home prices by finding investors to buy large pools of foreclosed properties owned by Fannie Mae and Freddie Mac, the two government-run mortgage companies that own or guarantee about half the nation’s mortgages.
“Partnerships involving enterprise properties may reduce taxpayer losses and meet the enterprises’ responsibility to bring stability and liquidity to housing markets,” FHFA Acting Director Edward J. DeMarco said in the press release.
Freddie Mac, of McLean, Virginia, and its larger rival, Washington-based Fannie Mae, have survived on government aid since September 2008, when they were seized amid crippling losses tied to subprime loans.
The FHFA is pursuing the quest because of expectations that housing prices will continue to fall if delinquent properties end in foreclosure, rather than being converted to some type of income-producing arrangement.
(Source: Bloomberg)
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4 Responses
Here’s an idea Obama, something you haven’t done since you became president. CREATE JOBS put the people back to work so they can pay their mortgages with dignity.
You came into office and wasted all your time on a single item now known as Obama care a compelte waste of money and time instead to doing what the president took an oath to do, HELP ALL americans maintain the dream and not our jobs go over seas.
American first Mr. president put all your world government BS where it belongs
1. Government does NOT “create” jobs other than government jobs and HKB”H knows we dont need more of those.
Government can assist in job creation by getting out of the way of the private sector so that WE can give/get jobs. Getting out of the way means reduce taxes, stop ridiculous regulations, and generally create an environment where companies will prosper.
However since he is The Obama, there is a snowball’s chance in g’henim that will occur.
Almost anyone BUT Obama in 2012!
The White House wants to reduce what they are causing? “Wanting” to reduce foreclosures is nice of the White House. Actually, the House could do no worse than the people living there.
The headline is misleading. It’s not about reducing foreclosures. It’s about reducing the huge number of foreclosed properties the government has to dispose of. By taking them off the market (through conversion to rentals) it is hoped the reduced supply will force housing prices to stop collapsing, and thereby stop the emerging depression which is being fueled in part by falling home valuations. Once home prices stop falling, they hope that people will resume spending, and the economy will prosper.