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Senators Urge Government to Act Fast to Create an REO Rental Program

Thirty-three senators submitted a ""letter"":http://reed.senate.gov/press/release/senators-urge-innovative-reo-rehab-to-rent-strategy-to-help-stabilize-housing Thursday encouraging the Obama administration and the ""Federal Housing Finance Agency"":http://www.fhfa.gov/ (FHFA) to work quickly in developing a program to make vacant foreclosed homes available for rent.

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The administration is currently sifting through ""responses"":http://dsnews.comarticles/industry-responds-to-governments-request-for-information-2011-10-05 to the request for information (RFI) it submitted in August regarding an REO rental program.

The senate held a ""hearing"":http://dsnews.comarticles/senate-holds-hearing-on-foreclosure-glut-2011-09-20 in September titled ""New Ideas to Address the Glut of Foreclosed Properties,"" during which Laurie Goodman spoke in support of bulk sales to investors.

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Sen. Jack Reed (D-Rhode Island) has supported such an effort since 2010.

Reed along with Sens. Tim Johnson (D-South Dakota), and Bob Menendez (D-New Jersey) pose several questions to the FHFA, ""Treasury,"":http://www.treasury.gov/press-center/news/Pages/102511-secretary-geithner-at-corning.aspx and the ""Federal Housing Administration"":http://www.fha.com/ regarding their review of the RFIs. They request that the agencies respond with a timeline for when they expect to finish reviewing the RFIs, what they expect their next step to be, and when they expect that next step to take place.

""We urge you to analyze, quickly and diligently, the input you have received so that all REO properties under your control may be best managed to produce the most value for Fannie Mae, Freddie Mac, and FHA,"" the senators state in their letter. ""As part of this analysis, we ask that you also keep in mind the importance of looking for the most effective ways to stabilize neighborhoods and housing values.""

The senators state that 7.5 million homes have been in foreclosure since 2007 and 10.4 million homeowners are currently at risk of default.

As such, the senators ""urge FHFA to do everything within its powers to take this opportunity to address these concerns head on.""

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