Industry News

Bulk REO sales bypass Realtors

Fannie, Freddie, FHA face tsunami-sized shadow inventory

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Will the Obama administration's upcoming plans to sell REOs in bulk to mega-investors at deep discounts siphon away hundreds of millions of dollars in commissions to real estate brokers who now sell -- or assist buyers to acquire -- foreclosed properties held by Fannie Mae, Freddie Mac and FHA?Will the new approach to REO ("real estate owned") be bad news for small-scale investors who no longer will be able to compete because entire chunks of the agencies' portfolios will be stamped "for bulk only"? Won't this further the impression that Washington favors the fats cats on Wall Street over Mom and Pop on Main Street?And what about the community impacts on local governments and nonprofits who want to stabilize neighborhoods by putting new owners into vacant foreclosures, rather than filling them with renters brought in by distant bulk buyers?With the federal government now teeing up its first bulk-sale transactions -- possibly within weeks -- these are increasingly p...