Carrington Holding Co. is trying to raise $1 billion from investors to purchase foreclosed single-family properties that its mortgage services unit will manage and rent.
The Santa Ana, Calif.-based holding company is looking to participate in an REO rental program that the Federal Housing Finance Agency (FHFA) and Department of Housing and Urban Development are expected to roll out this spring.
"We would love to be part of the FHFA program, but we are looking at other alternatives," said Rick Sharga, a Carrington Mortgage Services (CMS) executive vice president. "We might just go find the properties and build our own portfolio," he added.
Sharga noted that CMS has a property services subsidiary that is already renting properties for its own portfolio and for Fannie Mae.
And CMS has a real estate brokerage firm that operates in 27 states. "We can use the funds we are raising to cherry pick properties in local markets," Sharga told ASR sister publication National Mortgage News.