The Federal Housing Administration is selling 11,000 to 13,000 foreclosed homes a month after re-engineering the way it manages and markets REO.
Like what you see? Click here to sign up for a National Mortgage News free trial and daily newsletter to get the latest feature stories, news headlines, data, and in-depth analysis on the issues impacting the mortgage industry.
“Monthly sales were as low as 2,725 in December 2010, but rose to an all-time high of 13,609 in June,” acting FHA commissioner Carol Galante told a congressional panel.
Until recently, one contractor performed property maintenance, marketing and sales of the agency’s REO inventory — which meant that firm made money if the property sat on the market, but former FHA deputy assistant secretary Vicki Bott decided to divide those functions into three contracts to expedite listings and incentivize sales.
For the first nine months of fiscal year 2011 (ending June 30) the average days-to-list and the average days-to-sell REOs decreased by 76 days (61%) and 25 days (12%) respectively, as compared to FY 2010, according to the commissioner’s Sept. 8 testimony
This acceleration of sales has allowed FHA to reduce its REO inventory by nearly 40% in four months.
“As a result of these initiatives and despite the spike in properties being conveyed to us, FHA’s inventory of REOs is down to 48,324,” Galante testified. The agency had an REO inventory of nearly 80,000 REO at the end of March.
Daily Briefing | Thursday, September 15, 2011
Reddam’s CashCall Mortgage Puts Out ‘Help Wanted’ Sign
Wanted: 520 mortgage professionals and the man doing the hiring is former DiTech chief Paul Reddam.
Foreclosure Activity Sparked by Surge in Default Notices
Foreclosure activity increased 7% in August over the prior month but was down 33% compared to the same month a year ago, according to new figures compiled by RealtyTrac.
Another New Low for Mortgage Rates
Fixed mortgage rates fell to the lowest level in six decades for the second straight week, according to new figures compiled by Freddie Mac.
MBA Pushing FHA to Open Up Program to Investors
The Mortgage Bankers Association is urging the Federal Housing Administration to reopen its 203(k) program to local investors wanting to buy and renovate foreclosed properties.
SEC’s REIT Review Could Chill Housing Market, Analysts Warn
The once red-hot mortgage REIT sector is in for a cold dose of reality which could spill over to the already-cool housing market.
U.S. Orders Former CFC Worker Rehired
The Department of Labor Wednesday ordered Bank of America to rehire and pay $930,000 to a former mortgage employee improperly fired in a whistleblower case tied to Countrywide Financial Corp., the troubled lender bought by the bank in 2008.
HUD Audit Finds Underwriting Deficiencies at New York Lender
The Department of Housing and Urban Development wants All American Home Mortgage Corp. to indemnify the FHA against future losses on five loans that violated agency guidelines.
House Passes Measure that Includes Flood Coverage
House appropriators this week introduced a temporary measure that will continue to fund government operations, including the flood insurance program, through Nov. 18.