Experts debate Obama administration’s rental plan for government-owned homes

Miami /
Aug.August 11, 2011 04:03 PM

Housing market experts remain divided over the Obama administration’s proposal yesterday to sell government-owned foreclosed properties and convert them to rentals. The administration’s suggestion would involve teaming up with private-sector partners, who may be willing to purchase pools of similar properties for conversion, in order to clear the foreclosure backlog and meet increasing demand for rental units. Yesterday’s request for information by the government, was primarily aimed at potential investors, the Journal said.

Solutions that rely on investors to clear the overhang of foreclosures have “extraordinary value,” said David Stevens, chief executive of the Mortgage Bankers Association, who previously served as the commissioner of the Federal Housing Administration. “Without question, in order to settle the markets and move the foreclosed inventory, we’re going to need both owner-occupied and non-owner-occupied solutions. That means investors have to come in to participate.”

Others had different ideas entirely, including Richard Smith, CEO of Realogy, which owns major brokerages the Corcoran Group, Citi Habitats, Century 21 and Coldwell Banker.

“[This] is the stupidest idea I’ve ever heard in my life,” because buyers are paying close to list price on foreclosures, he told the Journal. “The hedge-fund approach to this is a pipe dream. It’s not going to happen. The marketplace would much prefer that these go to small investors who manage them in their own backyard.” [WSJ]


Related Articles

arrow_forward_ios
David Purisch and Duff Rubin
Movers & Shakers: Duff Rubin takes over Coldwell Banker in Florida & more
Movers & Shakers: Duff Rubin takes over Coldwell Banker in Florida & more
Alex Vidal and Craig Studnicky
Alex Vidal leaves RelatedISG to join Coldwell Banker in Dallas
Alex Vidal leaves RelatedISG to join Coldwell Banker in Dallas
Vladislav Doronin (Credit: Gesi Schilling via Wikipedia)
Billionaire developer Doronin buys Fort Lauderdale assemblage for $63M
Billionaire developer Doronin buys Fort Lauderdale assemblage for $63M
Seth Wise, Co-CEO of The Altman Companies, Altís Ludlam Trail
Altman scores $55M construction loan for Ludlam Trail project
Altman scores $55M construction loan for Ludlam Trail project
Joseph Swedroe (Corcoran, iStock)
Corcoran agent in Miami loses job over “racist and fear-based” marketing
Corcoran agent in Miami loses job over “racist and fear-based” marketing
Vanessa Grout with Vladislav Doronin
Vanessa Grout leaves Ugo Colombo’s firm to lead OKO Group’s real estate arm
Vanessa Grout leaves Ugo Colombo’s firm to lead OKO Group’s real estate arm
Rendering of the project with Jon Paul Pérez (top) and Jorge Pérez 
Related switches gears on Terminal Island project, now plans low-rise offices
Related switches gears on Terminal Island project, now plans low-rise offices
Edgardo Defortuna and a rendering of La Playa de Varadero
Not stopping for the pandemic: Fortune, Château could launch Sunny Isles project by year-end
Not stopping for the pandemic: Fortune, Château could launch Sunny Isles project by year-end
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...