Fannie Cracks Down on Financing REO Homes for Rent-to-Own Firms
June 2, 2017
Fannie Mae plans to discontinue selling homes to one of the largest rent-to-own firms as part of a crack down on abusive forms of seller financing. After criticism brewed about abuses with practices such as rent-to-own leases and long-term installment agreements such as contract-for-deed sales, the GSE said it will not sell REO properties to Vision Property, a South Carolina-based firm. The firm has been in operation since 2004 and owns more than 6,000 homes across the country. Vision was highlighted in a New York Times article last year, which noted, “Most tenants walk away with nothing, having sunk money for rent and repairs into homes they had once hoped to own. Others faced surprise evictions.”