RPX: Government REO inventory will drive housing market
As the government-sponsored enterprises (GSEs) and Federal agencies involved in housing finance sell their collective inventory of over 200,000 repossessed homes, they will generate significant pressure on prices, according to the April 2010 RPX Monthly Housing Market Report released by Radar Logic Incorporated. And with their large position in the delinquent mortgage pipeline, their influence over home prices could last for years. As Fannie Mae, Freddie Mac, the Department of Housing and Urban Development (HUD) and the Department of Veterans Affairs (VA) sell REO inventories for less than the book value on their loans, they generate billions in losses for taxpayers. When the huge numbers of government-insured mortgages in the intermediate stages of default or foreclosure are taken into account, losses from future government REO sales could reach hundreds of billions of dollars.
Don Schaller
Broker Owner
Schaller Family Realtors
Dickson Realty Truckee
