The FHFA is launching a pilot program to sell foreclosed home owned by the GSEs. They will be pooled geographically and sold in bulk, presumably to funds who will rent them out.
The pilot is in LA, Chicago, Las Vegas and Florida.
It’s a refreshing sign of creativity after 5 years of following the legal textbook on foreclosures. This program won’t make a difference but it’s better than Hank Paulson rolling out 1-800 numbers and it shows a willingness among the bureaucrats to try new things.