The Federal Reserve won’t stand in the way if banks it supervises want to rent out homes they’ve repossessed, as long as it’s part of "an orderly disposition strategy" to get foreclosed properties off their books "at the earliest practicable date."

Given "the extraordinary market conditions that currently prevail," the Fed said it will not require that lenders demonstrate "continuous active marketing" of real estate owned (REO) properties if they decide that it makes more sense to rent them out than sell them at a loss.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top