U.S. Senators Push for Quick REO Solution – NMP Skip to main content

U.S. Senators Push for Quick REO Solution

NationalMortgageProfessional.com
Oct 28, 2011

In an effort to boost the economy, create jobs, and stabilize neighborhoods, 33 U.S. Senators are asking the Obama Administration and the Federal Housing Finance Agency (FHFA) to swiftly develop an efficient and effective real estate-owned (REO) management strategy to make better use of vacant foreclosed homes. Led by Sens. Jack Reed (D-RI), Tim Johnson (D-SD), and Bob Menendez (D-NJ), the senators wrote a letter to the U.S. Department of the Treasury, the U.S. Department of Housing & Urban Development (HUD) and the FHFA stating: “We urge you to analyze, quickly and diligently, the input you have received so that all REO properties under your control may be best managed to produce the most value for Fannie Mae, Freddie Mac and FHA. As part of this analysis, we ask that you also keep in mind the importance of looking for the most effective ways to stabilize neighborhoods and housing values.” With 10.4 million households in jeopardy of defaulting on their mortgages at the same time that the demand for rental housing is increasing, Americans are facing pressure on all fronts in the housing market. Since 2010, Sen. Reed has led a proposal to make better use of REO properties by converting vacant foreclosed homes into affordable, energy-efficient rental units. In August 2011, FHFA, Treasury, and HUD issued a formal Request for Information (RFI) soliciting public feedback and investor ideas for how to sell or rent REO properties. On Sept. 20, the Banking Subcommittee on Housing, Transportation, and Community Development, chaired by Sen. Menendez, held a hearing on “New Ideas to Address the Glut of Foreclosed Properties,” where expert witnesses testified that a more effective REO management strategy will help put us on a path towards greater economic stability. “There are too many foreclosed homes, many of which are unoccupied, and an increasing number of Americans who are in need of affordable rental housing," said Sen. Reed. "With the other side of the aisle seemingly embracing a 'let it fall' policy when it comes to legislative housing solutions, the American people still need creative, proactive strategies to fix the economy. Developing an innovative REO initiative could help turn lemons into lemonade by creating new opportunities for businesses and investors while simultaneously increasing the supply of rental housing and reducing foreclosures." Sen. Menendez said, "We need to fix the housing market to fix the broader economy, and getting the government’s foreclosed homes into people’s hands is a key part of that. We have explored this issue in my Housing Subcommittee. I remain committed to finding a solution, and I am encouraged that the Obama Administration is doing the same."
Published
Oct 28, 2011
Open Mortgage Names New President

Joe Stephenson, formerly of American Advisors Group, to lead daily operations.

Industry News
Dec 01, 2021
Homepoint Expands Refinance Program Offerings

Now offers Freddie Mac’s new refinance option, Refi Possible, making it easier for many homeowners with a Freddie Mac-owned mortgage to reduce their interest rate.

Industry News
Nov 30, 2021
Non-QM Lender Deephaven Hires Business Development VP

Dallas-based Tim Fisher charged with growing Deephaven’s correspondent business In Texas and surrounding states

Industry News
Nov 30, 2021
Biden Reappoints Powell As Federal Reserve Chairman

A signal that The Fed will continue its policies as inflation surges and economic uncertainty spikes due to an emerging variant of the coronavirus. 

Industry News
Nov 29, 2021
Servion Taps Sagent For Consumer-First Servicing Tech Stack

A 7-year deal between Servion Mortgage and Sagent will equip Servion with Sagent's tech stack for performing, non-performing, and consumer experience.

Tech
Nov 29, 2021
Guaranteed Rate's Banosian Funds $2B In Total Loan Volume

The mortgage industry shouldn't be surprised by Guaranteed Rate's top loan officer, Shant Banosian, funding $2 billion in total loan volume during a record-breaking year. After all, “The Billion Dollar Man” is one of the top 5 loan originators in the U.S.

Wholesale
Nov 29, 2021