This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fannie and Freddie Missing Out On Rental Wave (Update 1)

Freddie Mac, similarly, says it is unable to market 35% of its REO inventory.

This might be another impediment to doing large bulk sales.

A recent report by the Office of the Inspector General of the FHFA highlighted the GSEs management of foreclosed properties as a critical concern, especially in light of the agencies' significant "shadow inventory."

As of Sept. 2012, the agencies had nearly 1 million mortgages that are over 90-days delinquent, but had not yet completed the foreclosure process and were yet to hit the real estate market, the report noted.

The OIG said it will implement a proactive audit of the FHFA's and GSEs' efforts to dispose of the assets. The audit would include any expanded REO-to-rental program, it said.

If the FHFA does decide to go ahead with the program, it might not make much difference to the single-family rental market. Investors have found plenty of supply without the GSEs participation.

But if the FHFA's analysis shows that it benefits the taxpayer and communities, it would be a shame to miss the boat.

-- Written by Shanthi Bharatwaj in New York.

>Contact by Email.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BX $40.47 -2.06%
CLNY $22.52 -0.97%
FNMA $2.22 -3.48%
FMCC $2.12 -3.42%
AAPL $126.00 -0.35%

Markets

DOW 17,683.58 -46.53 -0.26%
S&P 500 2,068.76 -8.02 -0.39%
NASDAQ 4,991.94 -17.2740 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs