The idea for an REO rental program could soon provide additional competition for the manufactured housing industry. Panelists at the recent American Securitization Forum expressed support for a government-led program to rent out foreclosed Fannie Mae, Freddie Mac and FHA homes. According to an article in Housingwire, the foreclosure pipeline could add a million new REOs in this year and another million in 2013, presenting further challenges for an already struggling market for existing homes. Paul Willen, senior economist and policy adviser at the Federal Reserve Bank of Boston tells reporters the program, which would make rentals more affordable, may not help the resell market. “Putting properties into rental pools doesn’t take it off the market,” Willen says. “Why buy if you can rent for cheap?”
