Fed News Friday – Fed Outlines Guidelines for Rental of Foreclosed Properties
April 21st, 2012
‘The Federal Reserve outlined the rules it expects banks to follow in renting out properties acquired through foreclosure.
The statement is aimed at “reiterating that statutes and Federal Reserve regulations permit rental of residential properties acquired in foreclosure as part of an orderly disposition strategy,” the Fed said today in a release in Washington.
Converting foreclosed properties into rentals was a strategy advocated by Chairman Ben S. Bernanke in a study the Fed sent to Congress in January on proposals to aid the housing recovery. In a cover letter to the paper, Bernanke said that “restoring the health of the housing market is a necessary part of a broader strategy of economic recovery.”
“The general policy of the Federal Reserve is that banking organizations should make good faith efforts to dispose of foreclosed properties” at the earliest possible date, the Fed statement said.
‘In light of the extraordinary market conditions that currently prevail,” the Fed said that banks may rent out foreclosed properties “without demonstrating continuous active marketing of the property for sale, provided that suitable policies and procedures are followed.”
The central bank noted in the statement that the flow of foreclosures onto the market would “continue to weigh on house prices for some time.”’
And don’t forget to visit our official website to learn more about the Silver Circle Movie:http://SilverCircleMovie.com
