The first bulk sale of 2,500 Fannie Mae REO properties will sell at a discount to single assets, but has the potential to drive prices up after the first $10 billion to $20 billion in foreclosed homes are sold to institutional investors and converted to rentals, according to the Amherst Securities Group (ASG).

The next $400 billion in REO sales could drive prices “much higher,” ASG chief executive Sean Dobson told a congressional panel Monday.

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