Fannie “Actual Property Owned” stock elevated in This fall; Anticipated to extend additional in 2023

by Calculated Threat on 2/20/2023 01:37:00 PM

Fannie reported results for Q4 2022. Right here is a few data on single-family Actual Property Owned (REOs). 

First, a be aware on the pandemic from Fannie:

“In response to the COVID-19 pandemic, various legislative and government actions have been taken by the federal
authorities and state and native governments to help affected debtors and renters and to sluggish the unfold of the
, together with actions that utilized to the loans we assure. Whereas most of those actions are not in impact,
the COVID-19 nationwide emergency stays in place. In January 2023, the Administration introduced it intends to increase
the COVID-19 nationwide emergency to Could 11, 2023, and finish the emergency on that date. We proceed to supply
forbearance reduction and different house retention options to debtors affected by the COVID-19 pandemic …”
 emphasis added

A kind of actions was a foreclosures moratorium that resulted in mid-2021. Since then, foreclosures have elevated barely.

Fannie Mae reported the variety of REOs elevated to eight,779 on the finish of This fall 2022, up 23% from 7,166 on the finish of This fall 2021.  For Fannie, that is down 95% from the 166,787 peak variety of REOs in Q3 2010.

Fannie and Freddie REO Click on on graph for bigger picture.

Here’s a graph of Fannie Actual Property Owned (REO).

That is effectively under a traditional degree of REOs for Fannie, and REO ranges will improve additional in 2023, however there won’t be a huge wave of foreclosures.

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