Tuesday, August 02, 2011

FHA sells record number of REO in June

by Calculated Risk on 8/02/2011 03:11:00 PM

Note: I'll post on vehicle sales soon.

Earlier this year, Tom Lawler noted that the FHA was having REO inventory problems, and the FHA's REO inventory increased in Q1.

It now appears the FHA REO problem has been solved. The FHA sold a record number of REO in April, more in May, and another new record in June.

According to HUD, the FHA acquired 7,667 REO in June and sold a record 13,609 properties (breaking the record of 12,671 properties sold in May). The FHA REO inventory has declined from 69,958 at the end of Q1 2011, to 54,645 at the end of Q2.

FHA REO InventoryClick on graph for larger image in graph gallery.

Fannie and Freddie are expected to release results including REO aquisitions and inventory later this week. From Diana Golobay at HousingWire: Fannie Earnings Expected Later This Week, Freddie After

Freddie Mac spokesperson Michael Cosgrove noted the company could release its Q210 earnings later this week but may wait until close of business Monday. Fannie Mae spokesperson Jason Vasquez also said earnings are anticipated "sometime this week," ... it is believed that Fannie will release Thursday, with Freddie to follow after, sources say.
I expect Fannie and Freddie to report declines in REO inventory in Q2 too.