Fed OKs banks as landlords

Lenders get green light on renting out REOs

EMBRACE. FOCUS. EXECUTE. Build your 2019 roadmap to success with 4,000+ real estate leaders.
Inman Connect New York | January 29 - February 1, 2019

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.