To: Smiling Bob who wrote (76399 ) 10/17/2012 8:52:10 PM From: ggersh 1 Recommendation Respond to Someone agree'sOch-Ziff Calls Top Of "REO-To-Rental", And Distressed Housing Demand, With Exit Of Landlord Business Tyler Durden on 10/17/2012 - 19:25 Auto Sales Bank of America Bank of America Ben Bernanke Carrington Capital Cash For Clunkers Colony Capital Foreclosures Housing Inventory Housing Market Institutional Investors None Oaktree Och-Ziff Private Equity RealtyTrac RealtyTrac Reuters GSE/FHFA endorsed REO-To-Rental plan, and associated securitization conduits , in which large asset managers have been encouraged to take advantage of government funded, risk-free financing (and entirely bypassing banks who have given up on loan origination due to legacy liability issues which have every bank tied up in litigation from now until Feddom come - just see today's Bank of America results) and purchase foreclosed properties in bulk, with the intention of converting them into rental properties. Needless to say, the subsidization of this wholesale purchasing of foreclosures, coupled with the ongoing " foreclosure stuffing " pursued by the big banks (as a reminder days to foreclose in California just hit a record 1,072 per RealtyTrac as banks simply refuse to clear housing inventory faster knowing full well withheld inventory is an additional clearing price subsidy) is the main reason why the punditry has been confused into believing there is a housing rebound. That this "rebound" is merely a subsidized demand pull phenomenon a la the "cash for clunkers" auto sales program is patently clear to most. Nonetheless what little confusion is left, is finally coming to an end, thanks to none other than one of the first entrants in the REO-To-Rental space, $31 billion hedge fund Och Ziff, which a year after entering the program with hopes of quick riches , is now looking to cash out.
