WASHINGTON – Nov. 2, 2012 – The Federal Housing Finance Agency (FHFA) announced today that it was “encouraged by the results of Fannie Mae’s first Real Estate Owned (REO) pilot transactions and remains committed to pursuing efforts that build upon the success of this initiative.”
The program is controversial. Florida Realtors® and the National Association of Realtors® (NAR) have objected. In many communities, demand for foreclosure properties outweighs supply.
“Today’s real estate market is very different than it was when FHFA started this project,” says Florida Realtors’ Senior Vice President of Public Policy John Sebree. “Market dynamics have shifted dramatically, and few people still believe a bulk sale program is needed. REO time on market is very short, prices are increasing in most areas of Florida, and demand is up nationwide.”
NAR now believes FHFA’s bulk sale program is “a total waste,” Sebree adds. “NAR is doing its best to make sure the program does not go forward.”
In addition to Florida, the California Association of Realtors has strongly objected to the bulk sale program. It filed a Freedom of Information Act request in August to find out more details but hasn’t had a response yet.
Sebree says he expects more discussions with NAR and other major players next week at the National Association of Realtors Conference and Expo in Orlando.
In addition to the 699 Florida properties to Pacifica Companies LLC, the first round of bulk single-family home sales included 94 properties in Chicago purchased by The Cogsville Group; and 970 properties in California, Arizona and Nevada bought by Colony Capital. FHFA also listed properties in Atlanta that did not attract a buyer.
While FHFA seems to be considering new bulk REO sales to investors, it has not yet announced any packages. For updates on Fannie Mae properties, visit its HomePath information webpage.
For more information on the completed deals, visit HomePath’s sale history webpage.
© 2012 Florida Realtors®
