Next Step in FHFA REO-to-Rental Initiative Announced

by devteam February 28th, 2012 | Share

Investors who have prequalified tornpurchase lender owned real estate (REO) under a program unveiled February 1 byrnthe Federal Housing Finance Agency (FHFA) were notified on Monday about thernnext step in the program.  FHFA announcedrnthat it will soon begin accepting applications from investors to demonstraterntheir financial capacity, experience, and specific plans for purchasing poolsrnof Fannie Mae foreclosed properties in Atlanta, Chicago, Los Angeles, Phoenix,rnand parts of Florida.  Central to thernprogram is the requirement that the properties must be rented for a specifiedrnnumber of years before they can be resold.</p

In order to ensure compliance withrnapplicable securities laws and regulations, details of the sales announcement</bwill be sent to prequalified investors. rnThose who subsequently post a securities deposit and sign a confidentialityrnagreement will be given more detailed, property specific information and canrnthen submit a comprehensive application. rnThe applications will be reviewed by an outside firm and only investorsrnwho are qualified through what FHFA called “this rigorous process” will berneligible to bid.</p

MichaelrnStegman, Counselor to the Secretary of the Treasury for Housing Finance Policyrnsaid, “We believe that this initiative holds promise for providing support tornlocal neighborhoods that were especially hard hit by the housing crisis andrnwill help meet the rising demand for rental housing in many communities.” </p

Anyrninvestors interested in the pilot program who have not prequalified may stillrndo so by completing the forms available on the FHFA REO Initiative page.

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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