ELIZABETH WARREN WANTS TO BREAK WALL STREET'S STRANGLEHOLD ON THE RENTAL HOUSING MARKET The senator is targeting Recession-era private-equity practices. By Sophie Kasakov – March 20, 2019, at: https://psmag.com/economics/elizabeth-warren-wants-to-break-wall-streets-stranglehold-on-the-rental-housing-market
Do you think Elizabeth Warren realizes she is setting-up an attack of two of the most liberal institutions the government has ever created, Fannie Mae and Freddie Mac?
As the author of this article points-out the institutional REO-to-Rent business model was a concept created by the Government Sponsored Enterprises (GSE’s) - Fannie Mae and Freddie Mac. As the home price bubble and mortgage bubble deflated, the business model was conceived by the GSE’s as a way to “economically and efficiently” dispose of their shadow inventory of foreclosed single family homes (SFH) and non-performing SFH mortgage loans.
Not only did the GSE’s develop the institutional REO-to-Rent concept, but they made the REO-to-Rent business model economically feasible by providing very economic pricing on the “bulk purchase” of their shadow inventory, and by providing very economic financing of the cost of the bulk purchases.
Early in the process of the creation of the institutional REO-to-Rent business model (by the GSE’s) I wrote a letter to my U.S. Congressman, Brad Sherman, I requested that he and others in Congress carefully evaluate the public policy and financial consequences of the institutional REO-to-Rent business model. (See my letter to Congressman Brad Sherman, at: http://billsplace.posthaven.com/bulk-sales-of-foreclosed-single-family-homes ).