Deutsche Bank Offers U.S. Plans for Renting Foreclosed Homes
Fortress Investment Group LLC (FIG) and Deutsche Bank AG (DB), whose executives played roles in the housing bubble, are among the hundreds of firms that responded to a U.S. government request for proposals to rent out
foreclosed fraudclosed homes.
The Federal Housing Finance Agency asked for ideas as Fannie Mae and Freddie Mac, the mortgage companies seized by the government in 2008, seek to reduce losses, stabilize neighborhoods and support housing values by turning into rentals a portion of the more than 180,000
repossessed illegally stolen homes in their inventory. The submissions were due by Sept. 15.
Carrington Holding Co., Barclays Capital Inc., Neuberger Berman Group LLC, Ranieri Partners LLC and UBS AG (UBSN) also were among the financial and investment companies that responded to the FHFA, according to a list of 439 proposals. The agency released the names in response to a Freedom of Information Act request filed by Bloomberg News.
“We’re obviously big proponents of this program,” Rick Sharga, executive vice president of Carrington, said in a telephone interview from his office in Santa Ana, California. “We think it meets a market need.”
Demand for rentals is rising as more homeowners lose their properties to
foreclosure fraudclosure and fewer buyers qualify for mortgages. About 6 million homes with a current market value of $750 billion will be repossessed stolen by banks or sold at distressed prices by 2016, according to Oliver Chang, a San Francisco-based analyst at Morgan Stanley. FHFA’s plans for a foreclosure fraudclosure -to- rental program are significant because Fannie Mae and Freddie Mac (FMCC) service more than half of U.S. home mortgages, he said.
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