Fannie “Real Estate Owned” inventory increased in Q4; Expected to increase further in 2023
by Calculated Risk on 2/20/2023 01:37:00 PM
Fannie reported results for Q4 2022. Here is some information on single-family Real Estate Owned (REOs).
“In response to the COVID-19 pandemic, a number of legislative and executive actions were taken by the federal
government and state and local governments to assist affected borrowers and renters and to slow the spread of the
pandemic, including actions that applied to the loans we guarantee. While most of these actions are no longer in effect,
the COVID-19 national emergency remains in place. In January 2023, the Administration announced it intends to extend
the COVID-19 national emergency to May 11, 2023, and end the emergency on that date. We continue to offer
forbearance relief and other home retention solutions to borrowers affected by the COVID-19 pandemic …”
One of those actions was a foreclosure moratorium that ended in mid-2021. Since then, foreclosures have increased slightly.
Click on graph for larger image.
Here is a graph of Fannie Real Estate Owned (REO).
This is well below a normal level of REOs for Fannie, and REO levels will increase further in 2023, but there will not be a huge wave of foreclosures.