Next Step in FHFA REO-to-Rental Initiative Announced

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