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October 2, 2014

FHFA Downplays Potential of Foreclosures-to-Rentals

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FHFA Downplays Potential of Foreclosures-to-Rentals

Senior FHFA official Meg Burns has clarified that the only goal of a pilot foreclosure-to-rent program is to gauge whether housing supply can be reduced and neighborhoods stabilized through bulk sales. The aim is not to expand the supply of affordable rental housing or boost energy efficiency, she stressed, as some believe.

At the same congressional hearing, Michael Stegman — Treasury Secretary Timothy Geithner's advisor on housing finance policy — said the initiative, if successful, could close a shortfall in owner-occupied housing demand and “serve as a model for private market participants.”

Source: "FHFA Downplays Potential of Foreclosure-to-Rental Program," American Banker (May 8, 2012)

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