Readers will recall I have a client trying to buy a Freddie Mac owned house listed for sale locally. We are being told the home is now tied up, possibly pending sale to an investor as part of bulk home sale. The bulk home sale was a policy designed to alleviate excess REO inventory in certain markets. We are very low on inventory here, so this was a shocking development. I asked for intervention from Congressmen Herger’s office, and this memo just received from his staff is an important update.
Skip, Per our conversation earlier this week, I wanted to let you know that I received an initial response from FHFA. The agency was firm that it is not operating the Real Estate-Owned pilot program, which sells properties in bulk to investors, in Northern California. That program is, in fact, limited to the hardest hit metropolitan areas – Atlanta, Chicago, Las Vegas, Los Angeles, Phoenix and parts of Florida. However, Freddie Mac may be operating its own initiative (emphasis mine, ed.) and FHFA has reached out to Freddie Mac to get some answers. I will be in contact with further developments.
Have a good weekend!
Rep. Wally Herger (CA-02)
242 Cannon HOB
Washington, DC 20515
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Wouldn’t you like it if some government agency sold you valuable inventory under the table, without any external oversight? Let’s hope this is not happening here.
As usual, I will keep you all informed of any new information.
FHFA is supposed to provide oversight of operations at U.S. Treasury seized Freddie Mac. This is from their Mission Statement:
“Provide effective supervision, regulation and housing mission oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks”