Thursday, November 03, 2016

Fannie and Freddie: REO inventory declined in Q3, Down 31% Year-over-year

by Bill McBride on 11/03/2016 12:43:00 PM

Fannie and Freddie reported results this week. Here is some information on Real Estate Owned (REOs).

Freddie Mac reported the number of REO declined to 12,185 at the end of Q3 2106 compared to 17,780 at the end of Q3 2015.

For Freddie, this is down 84% from the 74,897 peak number of REOs in Q3 2010. For Freddie, this is the lowest since at least 2007.

Fannie Mae reported the number of REO declined to 41,973 at the end of Q3 2016 compared to 60,958 at the end of Q3 2015.

For Fannie, this is down 75% from the 166,787 peak number of REOs in Q3 2010. For Fannie, this is the lowest since Q4 2007.

Fannie and Freddie REO Click on graph for larger image.

Here is a graph of Fannie and Freddie Real Estate Owned (REO).

REO inventory decreased in Q3 for both Fannie and Freddie, and combined inventory is down 31% year-over-year.

Delinquencies are falling, but there are still a number of properties in the foreclosure process with long time lines in judicial foreclosure states - but this is getting close to normal levels of REOs.