in News > Mortgage Servicing
print the content item


The California Association of Realtors (CAR) has criticized the Federal Housing Finance Administration (FHFA) for moving ahead with its real estate owned (REO) bulk sales pilot initiative in a manner that the trade group refers to as a "highly secretive manner, despite vehement opposition from California congressional members, the negative economic impact to the state’s housing market, and cost to taxpayers."

CAR adds that it is filing a request for details through the Freedom of Information Act. The REO bulk sales pilot program calls for the sale of nearly 500 Fannie Mae-owned foreclosed homes in the Los Angeles and Inland Empire areas to yet undisclosed institutional investors.

"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 CAR President LeFrancis Arnold. "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.

"We are also greatly concerned that the FHFA used extremely outdated market data, perhaps as old as [from] 2011, to determine property valuations," Arnold continues. "Because the transactions are only now in the process of closing, these dated valuations will drag down the Inland Empire’s home prices, which have shown strong signs of stabilization. Additionally, because of this price discrepancy and the very nature of bulk sales, we believe Fannie Mae is assured to not receive fair market value for the properties, thereby saddling taxpayers with their loss."




Latest Top Stories

New Home Sales Rose Slightly In October

It was the fifth consecutive month that the U.S. Census Bureau and U.S. Department of Housing and Urban Development downwardly revised the previous month's new home sales estimate.


PRIA: Two-Thirds Of County Recorders Now Have E-Recording In Place

More than 1,200 counties - or 68% of the nation's 3,600 recording jurisdictions - now have e-recording systems in place, according to a recent study conducted by the Property Records Industry Association.


Rise Of The Humans: Automation Versus Personalized Service

In lending, the increased adoption of more technology-driven methods of business and support should not overshadow the importance of the human element.


Why It's Time To Market HELOCs And Home Equity Loans

Lenders are and should be promoting home equity products that allow borrowers to tap into that rising equity.


Clear Capital: The College Town Effect On Housing

According to Clear Capital, towns with noteworthy university influence boast home price trends that far outperform the national rates of growth since 2004.

Urban Lending_id1351
Hse SandyHook
Industry Resource
Orb Mobile
SWBC_id1313
MBATX_id1385
NAMFS_id1399
MBA-TX_id