On Wednesday, the Federal Housing Finance Agency (FHFA) issued a joint release with the Department of Housing and Urban Development (HUD) and the Department of Treasury requesting input to find a solution to the overabundance of foreclosure properties. The government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, and the FHA owned 250,000 foreclosed properties in June and are tied with an estimated 830,000 properties currently in the foreclosure pipeline.
The objectives of the government entities’ Request for Information is as follows:
- Reduce the inventories of the GSEs and FHA in a cost-effective manner;
- Reduce average loan losses arising from the sale of individual properties;
- Address property repair and rehabilitation issues;
- Respond to economic and real estate conditions in various geographic locations;
- Assist with neighborhood and home price stabilization;
- Suggest approaches to deciding on the most suitable disposition strategies for individual properties including sale, rental, or demolition.