Freddie Mac, similarly, says it is unable to market 35% of its REO inventory.
This might be another impediment to doing large bulk sales.
A recent report by the Office of the Inspector General of the FHFA highlighted the GSEs management of foreclosed properties as a critical concern, especially in light of the agencies' significant "shadow inventory."
As of Sept. 2012, the agencies had nearly 1 million mortgages that are over 90-days delinquent, but had not yet completed the foreclosure process and were yet to hit the real estate market, the report noted.The OIG said it will implement a proactive audit of the FHFA's and GSEs' efforts to dispose of the assets. The audit would include any expanded REO-to-rental program, it said. If the FHFA does decide to go ahead with the program, it might not make much difference to the single-family rental market. Investors have found plenty of supply without the GSEs participation. But if the FHFA's analysis shows that it benefits the taxpayer and communities, it would be a shame to miss the boat. -- Written by Shanthi Bharatwaj in New York. >Contact by Email. Follow @shavenk
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV