Industry NewsMortgage

Fannie, Freddie pick up short-sale pace

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Fannie Mae and Freddie Mac were more willing to sign off on short sales during the second quarter but continued to repossess homes faster than they could sell them, according to the companies' latest regulatory filings. Fannie and Freddie finished the second quarter with a combined inventory of bank-owned (REO) homes of 191,500 properties, with both companies posting double-digit growth. Fannie Mae, which reported a $1.2 billion net loss for the second quarter, said REO inventory was up nearly 18 percent compared to the first quarter of 2009, rising to 129,310 homes as of June 30.The increase in REO inventory would have been steeper without the 21,515 short sales and deeds-in-lieu of foreclosure completed during the second quarter, a 24 percent increase from the first quarter of 2009.But Fannie Mae said the percentage of REO inventory that it could actually put on the market declined from a year ago, in most cases because homes are still within legal redemption periods, are still occup...