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Fannie Mae pleased with REO bulk sale pilot

Chief Financial Officer Susan McFarland of Fannie Mae spoke with HousingWire about the government-sponsored enterprise third quarter results and its REO bulk sale pilot.

The pilot is deemed a success and Fannie Mae may plan on using bulk sales to resolve more REOs. McFarland would not give specifics, but added that it is keeping REO bulk sales “in the tool shed.”

However, there are no indications as to when the time to use this tool will come again.

The bulk sales will also help to stabilize the neighborhoods within the pilot. The properties are rentals, which means investors cannot flip them quickly.

Short sales remain only one of several liquidation options at Fannie Mae.

On Nov. 1, the Federal Housing Finance Agency put in to place the short sale guidelines for both Freddie Mac and Fannie Mae. The guides will provide a more consistent and efficient approval process for servicers and borrowers.

McFarland believes the guidelines will help facilitate the process for Fannie Mae and the homeowners, although it’s still too soon see any results. Ultimately, the goal is choose a short sale option rather than foreclosure.

cmlynski@housingwire.com

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