The nation’s mortgage giants have been bailed out by tax payers in
excess of $187 billion so far as a result of the foreclosure crisis.
Fannie and Freddie are managing major inventories of foreclosures, which
are called REOs after they are officially repossessed by lenders. There
were about 180,000 in both mortgage giants inventories combined at the
end of 2011.
“The Enterprises are likely to face additional REO
management challenges due to the fact that more than 1.1 million of the
mortgages they presently own or guarantee are seriously delinquent,”
wrote Office of Inspector General Director Richard Parker.
day operations of both government backed enterprises is being directed
by the Federal Housing Finance Agency (FHFA), started by the Obama
administration. The governments watch dog is trying to prohibit
additional financial losses with its inquiry prior to the launch of a
government program that would sell bulk inventories of foreclosure homes
to major investment groups at deep discounts.