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September 17, 2012 • 10:58am
The use of third parties to help Fannie Mae sell its REO properties is coming to an end.
Fannie Mae notified remaining vendors that the government-sponsored enterprise will transition all REO sales work completely to Fannie Mae's in-house teams over the course of the next several months.
In the past, Fannie Mae used in-house sales teams and external vendors to dispose of REO properties.
"We have reduced our REO inventory from 162,489 properties at the start of 2011 to 109,266 as of June 30, 2012," said an email from Fannie Mae to HousingWire. "With a reduced inventory of properties, Fannie Mae's in-house teams now have sufficient capacity to manage our REO properties without the assistance of third party asset management providers."
Fannie Mae said the third party vendors, firms such as Vendor Resource Management and 24 Asset Management were notified of the move with enough time to make any necessary adjustments.
Some aspects of REO sales will remain the same.
"We will continue to engage local real estate professionals to market our properties," Fannie Mae said. "Fannie Mae's goal is to help neighborhoods recover by selling as many properties as possible to owner occupants at competitive prices."
Great, our federal government putting more people out of work. Look for many of these going in large bundles to private investor groups to be used solely as rental housing. Most likely low income and section 8 housing.
This is not a political statement, only a statement of fact.
Ugh, so true.
Is it just me or do Fannie Mae seem to put new carpet,paint and appliances in their properties and then selling them at or below other REO properties recent sale prices? This is not helping stablize values but is having a negative effect.
I swear I have never seen a worse run company. I have 40+ listings with the outsourcers and in the last 4-6 months every listing I have gotten a list price for the price has been 30-40% over what I told them it was worth. I honestly do not know why they have us do a BPO or MSR when they NEVER take our advice. If I get an offer on the property Fannie counters at $5 off the first 3 counters then rejects the offer anyway. Don't even get me started when it comes to repairs, they have us run around and get bids and then they list the property anyways without doing any work to them. The end of Fannie has to be coming because the way they are run death is inevitable.
I got my answer to your other discussion here, John. I did not care for working directly with FANNIE on their listings because of all the repair quote runaround and their 9pm shutdown of their awful website. It was good though dealing with the outsourcers. But my outsourcers lost out to these latest ones so I've not worked FANNIE in a couple of years.
Thats not Fannie thats the dumb a++ asset reps for the outsource companies. Become a Fannie Mae direct broker you will then enjoy what you do. Take care.
Hey Josh, I have sold Fannie Mae props consistently over the last 6 years via their vendors, never directly. I have applied with Fannie Mae several several times since 2010 and never have luck getting approved. Do you have any advice on how to get picked up by Fannie Mae, especially considering this transition to them handling everything in house?
Fannie uses agents to give them a Repaired and As-is value. 30% of the time they repair but the price is not from Fannie its from the agents whom want a quick sale.
I'm kind of jumping in late but keep in mind that often times repair bids are ordered to confirm the cost of repairs, especially when there is a variance between the BPO and appraiser's estimated repair cost.
This helps with internal IGV (Fannie Mae's internal value). I've never felt a Sales Rep ordered repairs for the heck of it, on the direct side I usually get an email saying why repair bids are ordered and they typically order bids "per my BPO" or "lender-required".
Hope this helps!
Based on your post you seem to understand Fannie Mae procedures. I completed my RFX application in April of this year. Within the website is says "Fannie Mae anticipates conclusion of review/evaluation within 6-8 weeks". It obviously been longer...is that typical ?
Hi Kent, I have sold Fannie Mae props consistently over the last 6 years via their vendors, never directly. I have applied with Fannie Mae several several times since 2010 and never have luck getting approved. Do you have any advice on how to get picked up by Fannie Mae, especially considering this transition to them handling everything in house?