Enhancing exclusive listing periods of foreclosed properties for owner-occupants might have had an effect on increasing the supply of affordable homes for homebuyers despite caveats, according to the Department of Housing and Urban Development’s Office of Inspector General.
The executive order would prevent federal agencies and the government-sponsored enterprises from facilitating the acquisition of a single-family home by a large institutional investor.
Thom Malone, principal economist at Cotality, said in a report that investors are waiting until a home has been sitting on the market so they can negotiate a lower price.
Uncertainty on the future of Fannie Mae and Freddie Mac has caused some lenders to deliver their agency-eligible production to the non-agency secondary market.