Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer...
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Transcript of Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer...
![Page 1: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/1.jpg)
Recycling REO: Disposition Strategies in the
Continuing Crisis
Matt Perrenod, Chief Lending OfficerHousing Partnership Network
![Page 2: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/2.jpg)
Where Are We?
Home Values Continue to Fall:
![Page 3: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/3.jpg)
Where Are We?Rate of foreclosure down, but still high:
![Page 4: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/4.jpg)
More to Come:
![Page 5: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/5.jpg)
Hot Spots
![Page 6: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/6.jpg)
Worst-Hit Markets
![Page 7: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/7.jpg)
Absorption Still Slow
![Page 8: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/8.jpg)
Fewer Homeowners
![Page 9: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/9.jpg)
Vacant Inventory is Piling Up
![Page 10: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/10.jpg)
Federal Response
• Some moves to prevent foreclosure:– AG Settlement• Mandates on big 5 for principal reduction
– Public/private pilots• Mortgage Resolution Fund• National Council of La Raza• Ocwen & other private-label• State-run HHF
![Page 11: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/11.jpg)
Federal Response
• Can we absorb excess single-family inventory through rental disposition?
• RFI from FHFA and FHA• Working group among FHFA, FHA, Treasury,
others
![Page 12: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/12.jpg)
Fannie Pilot
• Pilot offering from Fannie in FL, GA, IL, NV, SoCA, and AZ
• Promise of more to come• Two structures: cash sale & joint venture w/
Fannie• Due diligence period in process, sealed bids in
April
![Page 13: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/13.jpg)
Inventory & Rent Growth
![Page 14: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/14.jpg)
Concerns
• Who will own?
• How will they be managed?
• How long will they stay rental?
• How much will there be?
![Page 15: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/15.jpg)
Role for Mission Entrepreneurs?
• Feds Engaging in conversations• Definite encourage to private equity to talk
with non-profits• Weighting of community concerns not clear• Capital and operational challenges
![Page 16: Recycling REO: Disposition Strategies in the Continuing Crisis Matt Perrenod, Chief Lending Officer Housing Partnership Network.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649da75503460f94a93d92/html5/thumbnails/16.jpg)
Summary
• Market hasn’t kept up with inventory sufficient to support prices
• Major current is economic growth – if strong, defaults will decrease, absorption increase
• Too early to say, so rental disposition efforts are going forward, should continue this year
• Operational challenges are large