Fannie, Freddie and FHA shrinking REO inventories

Fannie Mae, Freddie Mac and FHA had 189,529 homes in their real estate owned (REO) inventories at the end of March — a 9 percent drop from a year ago and a decline of nearly 36 percent from the 2010 peak,  financial blogger Bill McBride reports.

Other institutions — portfolio lenders and loan servicers who collect payments on “private-label” mortgage-backed securities (MBS) — also have stockpiles of REOs, but those inventories are declining, too, McBride says. Source: calculatedriskblog.com.