Fannie Mae and the Federal Housing Finance Administration are being too secretive with a pilot bulk-sales program that sets out to unload its REO inventory, the California Association of REALTORS® said recently in a public statement. CAR argues that the government entities are continuing to move forward on the pilot program, despite an outcry among many in the housing market that it will have a negative impact on the economy and end up costing the taxpayers.
CAR is demanding more information about the properties included in the program, and the trade group has recently filed a request for more information through the Freedom of Information Act to get Fannie and the FHFA to disclose more.
Fannie Mae’s REO bulk-sales program in California aims to sell nearly 500 foreclosed homes in the Los Angeles and Inland Empire areas to undisclosed investors, CAR says.
“We are disappointed that Fannie Mae and the FHFA fail to understand that this initiative will harm the communities in which it will be implemented and are going forward with this ill-conceived plan,” says LeFrancis Arnold, CAR president. “Moreover, not only are Fannie Mae and FHFA moving forward with the plan, they are refusing to disclose any details, such as property locations, final property count, sales price, or names of winning bidders.”
CAR says they’re concerned that the FHFA is using outdated market data to determine property values and that by doing so it could drag down home prices in the region — at a time when the area is seeing prices stabilize. CAR, as well as California lawmakers, have also said the program is unnecessary because the Los Angeles and Inland Empire areas are already facing a “severe” shortage of housing with high demand and that REO listings are selling in less than 30 days.
In May, California congressional members introduced a bill to try to stop the bulk-sales program.
The author of this article is: realtormag.realtor.org
See the original post at: http://realtormag.realtor.org/daily-news/2012/08/31/reo-bulk-sale-program-too-secretive
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