Monday, August 09, 2010

REO Inventory including private-label RMBS

by Bill McBride on 8/09/2010 09:24:00 PM

Earlier I posted a graph of Fannie, Freddie and FHA inventory (new record total in Q2).

Economist Tom Lawler has added private-label RMBS REO in the following graph.

Note: The private-label securities have one advantage - they essentially stopped making new loans in mid-2007! (see Figure 3 from San Francisco Fed Senior Economist John Krainer: Recent Developments in Mortgage Finance)

Update: The private-label securities are the ones securitized by Wall Street. This was the worst of the worst securities.

Fannie Freddie FHA private-label RMBS REO Inventory Click on graph for larger image in new window.

From Tom Lawler:

As the chart indicates, the SF REO inventory of “the F’s” has increased sharply since the end of 2008, while the SF REO inventory held in private-label RMBS has fallen considerably. This chart, of course, does NOT include anything close to all REO, as SF REO properties owned by banks, thrifts, credit unions, VA, USDA, finance companies, and “other” mortgage lenders/investors are not included.