Washington, D.C. – Congressman David Schweikert (R-AZ) made the following statement today upon learning that the Federal Housing Finance Agency (FHFA) will operate one of its first ever Real Estate Owned (REO) Initiative pilot programs in Phoenix:

“I am elated to hear that the FHFA has announced their first pilot program in our backyard. For the past year in Congress, I have been encouraging the GSEs to develop a program where foreclosed properties can be leased back to homeowners at market rates. The selection of Phoenix as one of the first pilot programs is great news for our region.”

FHFA announced the first pilot transaction, including the eight MSAs affected, in its Real Estate Owned (REO) Initiative with Fannie Mae early this afternoon.

BACKGROUND: The goal of this initiative is to complete bulk sales of REO property for Fannie Mae and Freddie Mac in order to help stabilize neighborhoods and home prices. Selling these properties in also an important step in reducing the government’s role in the housing market and will provide additional affordable rental opportunities for families in the Phoenix area.