Fannie Mae Foreclosures Nearly Double in Q110
The amount of foreclosures held by the government-sponsored enterprise (GSE) Fannie Mae (FNM) nearly doubled from 2009. According to the quarterly earnings report filed for Q110, Fannie Mae holds more than $11.4bn in single-family foreclosed properties, up from $6.2bn in Q109. The foreclosure rate in its single-family portfolio reached 1.36%, up from 0.55% last year. For the quarter, Fannie reported an $11.5bn loss and requested $8.4bn in aid from the Treasury Department. The foreclosure volume reached over 109,000 from 62,000 in 2009. At the beginning of the period that number was just over 86,000. The region with the most was the Southeast with 17,700, followed by the Midwest with 15,000 and the Southwest with 12,800. The West was fourth with 12,600 and well behind the others, the Northeast had 3,500 foreclosed properties in the Fannie Mae portfolio. In the report, Fannie pointed out that foreclosure levels in the first half of 2009 were affected by foreclosure moratoria. “The continued weak economy and high unemployment rates, as well as the prolonged decline in home prices on a national basis, continue to result in an increase in the percentage of our mortgage loans that transition from delinquent to foreclosure status and significantly reduced the values of our foreclosed single-family properties,” according to the report. Write to Jon Prior.