Federally regulated banking institutions may now hang the “for rent” sign on houses in their portfolio of residential “other real estate owned” properties as an alternative to selling difficult to move OREOs, according to new guidance released by the Federal Reserve. Last week, the Fed issued a policy statement reiterating that federal statutes and its own regulations permit the rental of residential properties acquired in foreclosure as part of an orderly disposition strategy. “The general policy of the Federal Reserve is that banking organizations should make good faith efforts to dispose of...