Read it at Dr. Housing Bubble
The Federal Reserve recently came out with an unprecedented analysis directed to the Committee on Financial Services regarding various methods to improving the housing market. The paper is striking because it magnifies how little was learned from this banking and housing debacle. One of the big recommendations centers on creating a “REO to rental” program by facilitating bulk sales to large investors. Ironically the Federal Reserve by bailing out select banks has allowed home values to remain inflated thus causing this backup in inventory to emerge in the first place. Setting that obvious point aside, let us examine the merits of an REO to rental program.
REO-to-rentals another Fed subsidy for big investors and select banks. Federal Reserve looking to engineer yet another bailout for key banking allies. Fed acknowledges 12,000,000 homes with negative equity.
by Dr. Housing Bubble