Wednesday, November 09, 2011

Lawler: SF REO Inventories at Fannie, Freddie, PLS, and a “Guess” at FHA

by Bill McBride on 11/09/2011 05:38:00 PM

CR note: Here is some more REO data from economist Tom Lawler.

From Tom Lawler: Using data from Barclays Capital for private-label RMBS, the latest reports from Fannie and Freddie, and a “reasonable guess” for FHA (which is having “problems” with its September report), here is a chart showing SF REO inventories for “the F’s” and PLS.

Note that the FHA SF REO inventories shown in this chart are from various “Monthly Reports to the FHA Commissioner,” even though the REO data in these reports are not “stock/flow” consistent, and not quite accurate.

Fannie Mae REOClick on graph for larger image.

CR: This chart does not include REO owned by FDIC insured institutions (we will get an estimate when the Q3 Quarterly Banking Profile is released in a few weeks). Last quarter, Lawler estimated that REO inventory at FDIC insured institutions was about 81,000. That has probably declined slightly in Q3.

Also, as Tom Lawler noted before: "This is NOT an estimate of total residential REO, as it excludes non-FHA government REO (VA, USDA, etc.), credit unions, finance companies, non-FDIC-insured banks and thrifts, and a few other lender categories."

CR: Although we still need more data, my initial guess is total REO was around 500,000 in Q3.

Of course there are many more foreclosures to come - see my post this morning: Housing: REO and Mortgage Delinquencies