Industry NewsMortgage

Fannie, Freddie REO inventory swells

Eight homes foreclosed for every short sale

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

Fannie Mae and Freddie Mac boosted loan modifications by 76 percent in the last three months of 2008, but nearly doubled their inventories of real estate-owned properties over the course of the year as the companies eschewed short sales and seized properties faster than they could sell them. Fannie and Freddie's regulator, the Federal Housing Finance Agency, submitted a report to lawmakers today detailing actions taken to prevent unnecessary foreclosures. The report showed that among the 30.7 million residential mortgages owned or guaranteed by Fannie and Freddie, the percentage of loans delinquent by 60 days or more doubled from March to December, to 3.02 percent. But the percentage of 60-day delinquent loans entering the foreclosure process peaked in February, at 9.22 percent, falling to 6.38 percent in December. The percentage of 60-day delinquent loans completing the foreclosure process peaked at 2.89 percent in July, falling to 0.37 percent in December thanks in part ...