Fannie Mae has begun the first phase of an initiative to fix the U.S. housing market wherein it will sell foreclosed properties to investors, the Wall Street Journal reported.
The Federal Housing Finance Agency released the details of the program today, including that investors will have to buy the properties in bulk and be required to rent them out, the Journal said.
The program is designed to test the market for sales of foreclosed properties that could be converted to rentals. The properties hitting the block are in California, Florida, Phoenix and Chicago. [WSJ]