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Plan for bulk REO sales moving forward

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Fannie Mae and Freddie Mac's federal regulator says it's "proceeding prudently but with a sense of urgency" to lay the groundwork for bulk sales of repossessed homes to investors.On Aug. 10, Fannie and Freddie's regulator, the Federal Housing Finance Agency (FHFA), announced it was exploring bulk sales as an option for dealing with the mortgage giants' growing inventories of real estate owned (REO) properties.The Department of Housing and Urban Development (HUD), and the Treasury Department are consulting with FHFA on the program, which could also include homes repossessed by the Federal Housing Administration (FHA).In August, FHFA put out a request for ideas for sales, joint ventures and other strategies that would benefit Fannie, Freddie and FHA REO disposition programs. Responses were due back Sept. 15.Last month Democrats serving on the Senate Banking Committee urged FHFA and the Obama administration to move forward with a plan."With 10.4 million households in jeopar...