Oct
2
The real estate owned (REO) inventory of government-sponsored enterprises (GSE) Fannie Mae (FNM: 1.41 -3.42%) and Freddie Mac (FRE: 1.64 -5.20%) is near a combined 100,000 single-family properties, according to 10-Q filings with the Securities and Exchange Commission (SEC).
While the rate of growth in the two portfolios has declined, Freddie acknowledges it expects to experience further losses from REO properties.
“While temporary suspensions of foreclosure transfers and recent loan modification efforts reduced the rate of growth in our charge-offs and REO acquisitions during the second quarter of 2009, our provision for credit losses includes expected losses on those foreclosures currently suspended,” the Freddie filing said.
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