The Federal Housing Finance Agency recently began qualifying investors to purchase pools of real-estate-owned assets in some of the nation’s worst housing markets from Fannie Mae and Freddie and convert them to rental properties. But the strategy is opposed by some local California Realtors who stand to lose commissions on such bulk sales. The FHFA, along with the Department of Housing and Urban Development and the Department of the Treasury, announced the plan to convert REOs to rentals in August 2011. FHFA said in early February that investors were being pre-qualified to bid on Fannie’s REOs, while later that month the regulator unveiled its first pool of nearly 2,500 properties. But Realtors in California’s Inland Empire oppose such bulk sales, and their local legislators have written a letter to FHFA asking it to exclude their market from the sales.
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