California lawmakers have introduced a bill that sets out to stop a an “REO to rental” pilot program in the state that would allow bulk sales of Fannie Mae’s bank-owned properties to investors.

Rep. Gary Miller, a Republican who represents California’s 42nd Congressional District, introduced H.R. 5823, “Saving Taxpayers from Unnecessary GSE Bulk Sale Program Act of 2012,” along with seven co-sponsors to the bill.

The bill’s introduction was applauded by the California Association of REALTORS®, who has spoken out against an REO bulk-sales program in the state.

“We are hearing from our members that housing supply is extremely tight, with REO inventory being especially low at only a two-month supply,” LeFrancis Arnold, president of CAR, said. Home buyers in the state “already are competing with small investors and encountering multiple-offer scenarios.”

According to CAR housing data, bank-owned homes are closing in less than 60 days and for above the asking price.

In April, 19 California lawmakers had sent a letter to the Federal Housing Finance Authority, the regulator of mortgage giants Fannie Mae and Freddie Mac, first expressing their objection to an REO bulk sales program to investors.

FHFA had announced piloting a bulk-sales program to investors for nearly 2,500 of its REOs in select markets, including Atlanta; Los Angeles-Riverside, Calif.; Phoenix; Las Vegas; Chicago; Southeast Florida; Central and Northeast Florida; and Western Florida.

 

The author of this article is: realtormag.realtor.org

 See the original post at: http://realtormag.realtor.org/daily-news/2012/05/21/calif-lawmakers-try-stop-reo-bulk-sales-program

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