Fannie Mae Announces National REO Rental Policy

Tuesday, January 13, 2009
Fannie Mae

Fannie Mae (FNM/NYSE) today
announced the establishment of a new National Real Estate Owned (REO)
Rental Policy that will allow qualified renters in Fannie Mae-owned
foreclosed properties to stay in their homes. The company currently has
an eviction suspension in place through the end of January which will
allow for the new policy to be fully operationalized prior to the
suspension concluding.


"Renters in foreclosed properties have often been a casualty of the
foreclosure crisis the country is facing," said Michael Williams, chief
operating officer of Fannie Mae. "This policy will allow qualified
renters to remain in Fannie Mae-owned properties should they choose to
do so, mitigate the disruption of personal lives that foreclosures can
cause, and help bring a measure of stability to communities impacted by
high foreclosure rates."


The new policy applies to renters occupying foreclosed properties at
the time Fannie Mae acquires the property. Renters occupying any type
of single-family property will be eligible including residents of two-
to four-unit properties, condos, co-ops, single-family detached homes
and manufactured housing. Eligible renters will be offered a new
month-to-month lease with Fannie Mae or financial assistance for their
transition to new housing should they choose to vacate the property.
The properties must meet state laws and local code requirements for a
rental property.


While the company markets the properties for sale, Fannie Mae will
manage the properties through a real estate broker or a property
management company. The company will not require security deposits to
be posted in connection with this program.


Renters in the foreclosed properties will be asked to pay market rate
rent under the new leases. Rates may be determined by reviewing local
comparable rents, conducting a neighborhood survey, or through other
relevant indicators. Rates will also be subject to any legal rent
control restrictions. The company will review each instance where the
market rate may require a tenant to pay additional rent and will work
to reach an equitable resolution.


On behalf of the company, property managers are contacting renters in
Fannie Mae-owned foreclosed properties to notify them of their options.

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