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Thursday, November 08, 2012

Lawler: REO inventory of "the F's" and PLS

by Calculated Risk on 11/08/2012 04:00:00 PM

CR Note: Yesterday I posted a graph of REO inventory (lender Real Estate Owned) for the Fs (Fannie, Freddie and the FHA). Economist Tom Lawler has added estimates for PLS (private label securities).  Note that the FHA data was for August.

From Tom Lawler:

Here is a chart showing some history of SF REO holdings of Fannie, Freddie, FHA, and private-label securities (from Barclays Capital). Note that FHA has not yet released its report to the FHA commissioner for September (everything there may be focused on the FY 2012 Actuarial Review due out next week, which could be a doozy!), and the number for the end of Q3/2012 (38,187) is actually the August inventory number.

Fannie Freddie FHA PLS REO Inventory Click on graph for larger image in new window.

More from CR: When the FDIC's Q3 quaterly banking profile is released in a couple of weeks, I'm sure Tom will add an estimate for REO at FDIC-insured institutions. This is not all REO: In addition to the FDIC-insured institution REO, this excludes non-FHA government REO (VA, USDA, etc.), credit unions, finance companies, non-FDIC-insured banks and thrifts, and a few other categories.

REO inventories have declined over the last year. This was a combination of more sales and fewer acquisitions.

Also note Tom's comment on the forthcoming FHA FY 2012 Actuarial Review. That will be interesting.