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Senators want to see Fannie, Freddie REO plan

Foreclosed homes may be converted into rentals

As Fannie Mae and Freddie Mac continue to take possession of foreclosed homes at a rapid pace, Senate Democrats are voicing their impatience with their management of real estate owned (REO) properties.On Aug. 10, Fannie and Freddie's regulator, the Federal Housing Finance Agency (FHFA), along with the Department of Housing and Urban Development (HUD) and the Treasury Department announced that they were exploring options for allowing bulk sales of homes to investors and converting Fannie, Freddie and Federal Housing Administration (FHA) REOs in some markets into rental properties.FHFA put out a request for ideas for sales, joint ventures and other strategies that would benefit Fannie, Freddie and FHA REO disposition programs, which were due Sept. 15.In a letter to Fannie and Freddie's regulator and Obama administration officials, 33 senators  -- including Senate Banking Committee Chairman Tim Johnson and every other Democrat on the committee -- asked FHFA when it expected to finish its...