Burns addressed what she said were misconceptions regarding FHFA's intent and goals for the rental pilot.  First, it is highly targeted and focused only on markets that provide an opportunity to correct a fundamental supply-demand imbalance.  "This type of intervention would be highly inappropriate on a national scale and the program was never intended to be offered nationally," she said.  Second, the pilot will not result in severely discounted sales.  If the properties cannot be sold at close to what they would bring through retail execution then they will not be sold.


Because there are so many uncertainties, the pilot is initially limited to Fannie Mae properties... also because of the uncertain outcomes the first pool of properties includes a large number of properties that are already rented to tenants who were in place when the properties were conveyed to Fannie Mae. This will minimize the time that properties are held off the market and help to test one of the key objectives of the pilot - to determine investor appetite for this asset class.

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