The Federal Housing Finance Agency (FHFA) has announced that the winning bidders in a real estate owned (REO) pilot initiative have been chosen and transactions are expected to close early in the third quarter.
The FHFA launched the pilot program in late February, and in the second quarter, bids were solicited from qualified investors to purchase approximately 2,500 single-family Fannie Mae foreclosed properties. Fannie Mae offered for sale pools of properties in geographically concentrated locations. The investors were qualified to bid after a rigorous evaluation process and were evaluated on the basis of several factors, including financial strength, asset management experience, property management expertise and experience in the geographic area. The winning bidders were not publicly identified by the FHFA.
‘The FHFA undertook this initiative to help stabilize communities and home values in areas hard hit by the foreclosure crisis,’ says Edward J. DeMarco, acting director of the FHFA. ‘As conservator of Fannie Mae and Freddie Mac, we believe this pilot program will assist us in achieving our objectives and help to maximize the benefit to taxpayers. We are pleased with the response from the market and look forward to closing transactions in the near future.’