Relevant:
- Fannie Mae Announces Deed for Lease(TM) Program
- Own to Rent: Breaking Down Fannie Mae’s Deed for Lease Program
- Home Fannie Posts $11.5bn Net Q1 Loss, Looks to Treasury for $8.4bn in Aid
- BarCap Sees ‘Limited Use’ of Fannie’s Deed-for-Lease Program
- Grand Plans to Fix Fannie and Freddie's Foreclosure Mess Could Misfire
2009-11-05 — market-ticker.org
The government-controlled company, through its new "Deed for Lease" program, will allow borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that.
Denninger argues this is not as "generous" as it sounds, as its just a scheme to avoid selling the properties and taking the balance sheet loss. However, it is unclear from this how Fannie will internally account for the rental conversion.
It is rather telling that Fannie plans to hire an outside firm to manage the rentals. If that is the case, why not just sell them to an outside firm to, and put cash back in the government's pockets, hmmmmmmm???
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