A plan for Fannie Mae and Freddie Mac to subsidize investors who buy foreclosures is among foreclosure-reduction strategies that have been considered by the Obama administration, according to a former White House economist.
Also last week, a bill was introduced in Congress that would permit Fannie Mae, Freddie Mac and banks to rent out foreclosed houses for up to five years. HR 2636, the Neighborhood Preservation Act of 2011, would allow foreclosed houses to be leased to existing occupants or new tenants.