Skip to comments.California Realtors Slam FHFA Over 'Highly Secretive' REO Program
Posted on 09/09/2012 1:18:07 PM PDT by Lorianne
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 states 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"We are also greatly concerned that the FHFA used extremely outdated market data, perhaps as old as [from] 2011, to determine property valuations," Arnold continues.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 Empires 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."
If you are a first time home buyer or small time investor, too bad. Political connected big investment groups will get first grabs on foreclosed property.
Realtors: Sale of Foreclosed Homes to Spell Doom For Housing Market
Florida group complains about federal bulk foreclosure sales
Home-Grown Investors Cant Fight Bulk-Buying of Distressed Homes
Article gives link to CAR’s more detailed information on this:
“The FHFA, Fannie Mae’s conservator, announced earlier this summer that winning bidders in the foreclosure auction had been chosen, with transactions expected to close in the third quarter. In July, Fannie Mae created an LLC in California, called SFR 2012-1 US West LLC, to transfer the foreclosed properties from Fannie Mae to the LLC. It is unknown whether the winning bidders will purchase the full LLC or only a share, thus splitting the ownership between Fannie Mae and the winning bidders. ‘
Whenever the government gets involved, it never ends well...
The government is hell bent on this bulk sales of foreclosed property scheme
...just like the S&L bailout, hellbent on enriching the donors with taxpayer backed funds. Crooked DC rats in both parties get rich off the manufactured crisis and the taxpaying public gets screwed...thanks Boner and MacDaddyConell, our Repeubs always lookin out for us in DC! Yeah Right...
Thanks for pointing this out. I had missed that link
These realtors were pushing people into homes they couldn’t afford, and making big bucks on the “flippers”. They were pushing creative finacing when people wouldn’t qualify for a regular loan, and they were riding high when the market went out of sight.
Now they’re complianing about the foreclosures? They were a big part of the real estate mess.
There is an undeniable truth in that business: "The first loss is always the best loss".
FHFA is now a decade late.