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Robo-signing slows Fannie, Freddie foreclosure sales

Mortgage giants' REO inventories saw double-digit growth in 2010

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Loan servicers working for Fannie Mae and Freddie Mac drastically slowed the pace of foreclosure sales during the fourth quarter, largely due to moratoriums on foreclosures initiated during the "robo-signing" controversy, federal regulators said in a report released today.Third-party and foreclosure sales of Fannie and Freddie homes fell 44 percent from the third quarter to the fourth, to 76,645 homes, the Federal Housing Finance Agency said in the report.Fannie and Freddie loan servicers also eased up on foreclosure starts, which fell 8 percent from quarter to quarter, to 309,976.Impact of robo-signing controversy on Fannie and Freddie foreclosure starts and sales Source: Federal Housing Finance Agency. Short sales were also down nearly 13 percent from the third quarter, to 25,734. Fourth-quarter short sales were still up nearly 35 percent from a year ago.For 2010 overall, Fannie and Freddie's loan servicers started foreclosure proceedings on 1.17 million homes, up 12 perce...