Wednesday, July 23, 2008

Fannie and Freddie Own A Record $6.9 Billion Foreclosed Homes

Fannie Mae acquired twice as many homes through foreclosure in the first quarter as it sold, regulatory filings show. ... Late payments on the company's home loans, a harbinger of foreclosures, almost doubled in the past year.

Together, Fannie Mae and Freddie Mac, the two biggest U.S. mortgage finance companies, owned a record $6.9 billion of forelosed homes on March 31, compared with $8.56 billion held by all 8,500 U.S. commercial banks and savings and loans.

The typical price Fannie Mae received for foreclosed homes sold in the first quarter fell to 74 percent of the unpaid mortgage principal from 93 percent in 2005, according to Gabrielle Harrison, the company's vice president for REO sales. REO stands for :real estate-owned," a designation for properties that have been repossessed by creditors, reports Bloomberg.

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