Wednesday, February 22nd, 2012
Dear Member,
Last month, at the Board of Directors’ meetings in Indian Wells, many of you expressed concern over a proposal by the Federal Housing Finance Agency, Dept. of Treasury, and HUD to sell large blocks of Fannie Mae- and Freddie Mac-owned foreclosed homes to large investors. A pilot program is expected to be announced, and Southern California is an area being considered. While the program may be beneficial in some parts of the country where REO inventory is high, it would not be favorable in California, where housing inventory is extremely low and demand is high, even in the state’s hardest hit areas. REOs in California are getting multiple offers at top dollar and usually closing within 60 days on average. We have expressed our concern with California Congressional members and have been working with NAR to ensure that our voice is heard. We will be meeting with the FHFA and FHA in Washington, D.C., at the end of this month to determine how we can assist the housing regulators in the disposition of REOs. I will keep you informed on this important issue as it unfolds. Read C.A.R.’s letter to California Congressional members.
California’s housing market may get some much needed relief with last week’s announcement of the national mortgage settlement reached with the country’s five largest loan servicers. In the deal, 49 states, including California, agreed to a $25 billion settlement on abusive foreclosure practices. California will receive a large share of that amount to help struggling homeowners pay their mortgages or assist those facing foreclosure. Those who have already lost their homes could also benefit. Relief will go to areas hardest hit by the foreclosure crisis within the first year of the settlement. Read C.A.R.’s Realegal for more details on this settlement and find links to the California Attorney General and National Mortgage Settlement websites.
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