Thursday, August 11, 2011

Foreclosure Dave-speak 101: First lesson - what he says, what he means

Wednesday, the Federal Housing Finance Agency, Department of the Treasury, and the Department of Housing and Urban Development issued a joint press release requesting suggestions on how to best dispose of the large number (~250K) of foreclosed single-family homes that are currently owned by Fannie Mae, Freddie Mac, and the Federal Housing Administration.

Based on the press release, while the preference is for them to be owned by families, they are leaning toward turning a significant portion of the portfolio of foreclosed properties into rentals.

Naturally, the Congressman from Arizona's 5th District, "Foreclosure Dave" Schweikert is all over this.

He issued a press release, and as a public service, I will translate what he wrote into what he actually means -
“Since arriving in Congress one of my top priorities has been finding ways to re-start help me and my business partners squeeze even more blood out of the stone that is the U.S. housing market. One of the biggest impediments to a housing recovery even more profits for me and my wealthy friends at Swartz and Brough is that the U.S. government, through Fannie Mae and Freddie Mac, is holding more than 250,000 Real Estate Owned (REO) single family residences across the country. The continued inability failure to move these homes back into the marketplace into our possession has created significant uncertainty for the market our balance sheet, which has received little indication about when, how, and if these homes will ever be sold given to us.

“Today, the Federal Housing Finance Agency (FHFA), which oversees Fannie and Freddie, issued a Request for Information (RFI) to solicit ideas about how to dispose of these transfer the REO properties to me and my friends.

“Moving these properties off the government’s books and back into the market-place onto mine is an important step in creating velocity in the housing market a stable source of profit for me and mine by removing uncertainty about the fate of these homes. If priced at an appropriate discount subsidized for well-connected profiteers, these homes will be a unique opportunity for first time home buyers to enter the market at competitive prices to transfer most of their life savings to me and mine.

“Arizona is home to many real estate entrepreneurs profiteers and I welcome thoughts and feedback on ways to move these homes to reduce taxpayer risk me and mine and ensure this program is implemented properly, you know, with taxpayer subsidies for wealthy people.

“As part of the Republican jobs personal wealth acquisition at taxpayer expense agenda, this one technical correction that I am happy to be involved with and many Arizonans will be encouraged to see told that they can kiss my butt if they don't like it.”

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