The Board of Governors of the Federal Reserve System (“FRB”) on January 4, 2012 released a white paper entitled “The U.S. Housing Market: Current Conditions and Policy Considerations.” The white paper addresses three forces affecting the housing market: (i) the large inventory of vacant or unsold homes; (ii) the decrease in supply of mortgage credit; and (iii) current difficulties in the foreclosure process. In the white paper, the FRB suggests that lawmakers should consider policies that would help moderate the inflow of properties into the large inventory of unsold homes, make it easier for creditworthy borrowers to access mortgage credit and limit the number of homeowners pushed into an inefficient foreclosure pipeline. This DechertOnPoint summarizes the white paper’s discussion of issues and tradeoffs that the FRB believes lawmakers should consider in addressing these forces affecting the housing market. It remains to be seen whether other policymakers or regulators will take up the FRB’s approach outlined in the white paper. To the extent market forces are making single-family rentals more attractive for investors, private parties, including private equity funds, may move into this area.