GSEs Resume REO Sales

Posted by Orb Staff on November 30, 2010 No Comments
Categories : Mortgage Servicing

Fannie Mae and Freddie Mac have instructed their brokers to resume the marketing and sale of real estate owned properties (REOs). The companies had halted the marketing and disposing of REOs to give servicers a chance to review their foreclosure processes – more fallout from the robo-signing mess.

Freddie Mac sent a notice to its HomeSteps broker network on Nov. 24. Fannie Mae did not immediately respond to inquiries about the lift on REO sales, but a company spokesperson told The Wall Street Journal over the weekend that the decision to resume sales was ‘motivated by several factors, including the protection of buyers with title insurance, the negative impact lingering foreclosed properties have on neighborhoods and the cost burden that is placed on taxpayers when [bank-owned] sales are suspended,’

SOURCES: Freddie Mac HomeSteps, Wall Street Journal

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