Now that the Federal Reserve has given a go-ahead to the REO to Rental initiative, investors and lenders may proceed with more confidence. FHFA, Fannie and Freddie's regulator, has responded to questions about the program and the first pilot of 2500 properties in several states. They have named 3 main goals of the program:
- Gauge investor appetite for bunches of homes
- Will the initiative persuade investors and service providers to improve market conditions for real estate
- Can the model be replicated and become a "standard" program for REO sales
What does this have to do with relocation? Not sure, but bulk sales of properties have to influence local markets, and valuations must account for them. National and regional statistics on home values have to take into account these sales. And, these homes may be an attractive alternative to a relocating family that needs space and is stuck with an underwater departure home.
Younger folks are renting anyway in bigger numbers - rising rents and higher occupancy practically everywhere. Keep an eye on the FHFA program and make adjustments as needed. You may find the markets used for the 2500 home pilot at fhfa.gov.
