View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Advanced

Search

Board of Governors of the Federal Reserve System
The Federal Reserve, the central bank of the United States, provides the nation with a
safe, flexible, and stable monetary and financial system.
About
the Fed

News
& Events

Monetary
Policy

Supervision
& Regulation

Payment
Systems

Home > News & Events > Press Releases

Press Release
April 05, 2012

Federal Reserve Board issues policy statement
regarding rental of residential properties
acquired in foreclosure
For immediate release
Share

The Federal Reserve Board on Thursday released a policy statement
reiterating that statutes and Federal Reserve regulations permit rental of
residential properties acquired in foreclosure as part of an orderly
disposition strategy. The statement also outlines supervisory
expectations for residential rental activities.
The general policy of the Federal Reserve is that banking organizations
should make good faith efforts to dispose of foreclosed properties (also
known as "other real estate owned" or "OREO"), including single-family
homes, at the earliest practicable date. In this context, and in light of the
extraordinary market conditions that currently prevail, the policy
statement explains that banking organizations may rent residential
OREO properties within legal holding-period limits without demonstrating
continuous active marketing of the property for sale, provided that
suitable policies and procedures are followed.
Moreover, to the extent that OREO rental properties meet the definition
of community development under the Community Reinvestment Act
(CRA) regulations, the banking organizations would receive favorable
CRA consideration. In all respects, banking organizations that rent
OREO properties are expected to comply with all applicable federal,
state, and local statutes and regulations, some of which the policy
statement highlights. The policy statement, in providing guidance to

Economic
Research

Data

Consumers
& Communities

banking organizations and examiners, also describes specific
supervisory expectations for banking organizations with a larger number
of rental OREO properties, generally more than 50 properties available
for rent or rented.
The policy statement applies to banking organizations for which the
Federal Reserve is the primary federal supervisor, including state
member banks, bank holding companies, non-bank subsidiaries of bank
holding companies, savings and loan holding companies, non-thrift
subsidiaries of savings and loan holding companies, and U.S. branches
and agencies of foreign banking organizations.
For media inquiries, call 202-452-2955

Attachment

Last Update: April 05, 2012

BOARD OF GOVERNORS
of the FEDERAL
RESERVE SYSTEM
About the Fed
News & Events
Monetary Policy
Supervision & Regulation
Payment Systems
Economic Research
Data
Consumers & Communities
Financial Stability

TOOLS AND
INFORMATION

STAY CONNECTED

Contact
Publications
Freedom of Information (FOIA)
Office of Inspector General
Budget & Performance | Audit
No FEAR Act
EspaƱol
Website Policies | Privacy
Program
Accessibility

BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
20th Street and Constitution Avenue N.W., Washington, DC 20551