In an effort to clear out dense inventories of real estate-owned homes, the Federal Housing Finance Agency approved a second financial firm to purchase these properties in bulk from Fannie Mae and Freddie Mac.
The Cogsville Group is the latest company to join the initiative and is set to receive 94 foreclosed houses and multifamily properties in Chicago currently owned by Fannie, the agency announced. All units were sold at or above market value, minimizing financial losses for the government-sponsored enterprise.
"With the shifting fundamentals in the housing markets, single family residential is fast becoming an important asset class," said Cogsville Group chief executive Donald Cogsville.
Previously, the FHFA approved Pacifica Companies' purchase of 699 properties in Florida, one of the hardest-hit states following the housing market collapse.
It is the hope of the agency that both companies will be able to repair these homes and sell them for a profit, or convert them into affordable rental units. Whichever path the companies take, both initiatives could reduce the vacancy rate and help stabilize local markets.