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• Fannie Mae acquired 53,697 single-family real-estate owned (REO) properties, primarily through foreclosure, in the second quarter of 2011
• This compared with 53,549 in the first quarter of 2011
• Fannie Mae disposed of 71,202 single-family REO in the second quarter of 2011
• This was a 13,3% increase over the 62,814 REO in the first quarter of 2011
• As of June 30, 2011, the company’s inventory of single-family REO properties was 135,719
• This represented a 11.4% decrease from the 153,224 REO as of March 31, 2011
• The carrying value of the company’s single-family REO was $12.5 billion, compared with $14.1 billion as of March 31, 2011.

The changing foreclosure environment has significantly lengthened the time it takes to foreclose on a mortgage loan in many states, which has slowed the pace of Fannie Mae’s REO property acquisitions. The increase in foreclosure timelines also has increased Fannie Mae’s credit-related expenses and negatively affected its single-family serious delinquency rates. Fannie Mae believes these changes in the foreclosure environment will continue to negatively affect its foreclosure timelines, credit-related expenses, and single-family serious delinquency rates. Moreover, Fannie Mae believes these changes in the foreclosure environment will delay the recovery of the housing market because it will take longer to clear the housing market’s supply of distressed homes, which typically sell at a discount to non-distressed homes and therefore negatively affect overall home prices.

For more:  http://www.fanniemae.com/media/pdf/newsreleases/q22011_release.pdf;jsessionid=L4ZZUGKM20MSZJ2FQSISFGA