Monday, February 20, 2017

Fannie and Freddie: REO inventory declined in Q4, Down 33% Year-over-year

by Bill McBride on 2/20/2017 10:36:00 AM

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

Freddie Mac reported the number of REO declined to 11,418 at the end of Q4 2106 compared to 17,004 at the end of Q4 2015.

For Freddie, this is down 85% 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 38,093 at the end of Q4 2016 compared to 57,253 at the end of Q4 2015.

For Fannie, this is down 77% 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 Q4 for both Fannie and Freddie, and combined inventory is down 33% 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.