Industry News

REO homes open to Katrina victims

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Fannie Mae will provide 1,500 single-family homes for temporary housing for those displaced by Hurricane Katrina, the mortgage giant said Thursday. The houses come from Fannie's Real Estate Owned, or REO, stock (properties that have been re-purchased by a bank after foreclosure), Fannie Mae said. The government-sponsored enterprise will be discussing how best to administer the initiative with the Department of Housing and Urban Development and the Federal Emergency Management Agency. "We continue to assess the situation and are working with our regulators, OFHEO (The Office of Federal Housing Enterprise Oversight) and HUD, as well as industry leaders, lenders and servicers, and our partners in the impacted areas to determine ways we can be of assistance," said Daniel H. Mudd, chief executive officer of Fannie Mae. "We hope this contribution of REO properties will relieve some of the pressure, and help evacuees needing shelter," Mudd said. Fannie Mae is initially providing 1,500...