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.

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

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