Friday, Aug 12 2011 10:55AM
Government agencies are working to find a way to turn bank-owned properties into affordable housing rentals.
Recently, the Federal Housing Finance Agency, U.S. Department of the Treasury and U.S. Department of Housing and Urban Development (HUD) announced a Request For Information (RFI) to produce new options for selling real estate-owned (REO) properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration.
The goal of the RFI is to reduce the current glut of REO inventory nationwide while increasing investment in the housing market and supporting communities in need of affordable housing.
HUD Secretary Shaun Donovan stated that "with half of all renters spending more than a third of their income on housing and a quarter spending more than half, we have to find and promote new ways to alleviate the strain on the affordable rental market. Taking steps to encourage private investment in REO properties and transition them into productive use will help stabilize neighborhoods and home values at a critical time for our economy."
Congressman David Schweikert of Arizona stated selling off the REO inventory at affordable prices would aid many first-time homebuyers and the overall housing market.