Have a few ideas about how to solve the housing crisis you're just dying to share with the people in charge? Step right up: The Federal Housing Finance Agency, or FHFA, is seeking input on creative solutions to get foreclosed homes off the market and has joined with the U.S. Department of Housing and Urban Development, or HUD, to issue a request for information.
The glut of foreclosed single-family homes owned by Fannie Mae, Freddie Mac and the Federal Housing Administration account for up to a third of the homes sold each month and is dragging down home prices, raising the concern that more homeowners in distressed markets will be forced to foreclose. For this reason, the FHFA is seeking input on how to reduce the number of foreclosed properties and stabilize the market.
The FHFA has published the following objectives:
- Reduce the number of homes owned by Fannie Mae, Freddie Mac and FHA in a cost-effective manner.
- Reduce average loan loss severities to Fannie, Freddie and FHA relative to individual distressed property sales.
- Address property repair and rehabilitation needs.
- Respond to economic and real estate conditions in specific geographies.
- Assist in neighborhood and home price stabilization efforts.
- Suggest analytic approaches to determine the appropriate disposition strategy for individual properties, whether sale, rental, or, in certain instances, demolition.
Selling the homes to investors who will rent them is one solution that has been floated, but other solutions are also encouraged, such as ways to turn renters into owners and how to make the rental market more affordable. Responses are due by Sept. 15.
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