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$700 billion in GSE mortgages will need special servicing


By Call it Crazy   Follow   Wed, 19 Dec 2012, 10:53pm PST   247 views   1 comment
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The government-sponsored enterprises together have about $600 to $700 billion in unpaid principal balance tied to mortgage loans that will eventually require special servicing, suggested Paul Miller, with FBR Capital Markets, in a report Wednesday.

Miller cites Federal Housing Finance Agency data, which shows Freddie Mac has about $200 billion in unpaid principal balance that needs servicing, while Fannie Mae has $300 billion in servicing assets to shed. The FHA has about $150 billion in agency paper.

http://www.housingwire.com/news/700-billion-special-servicing-pipeline-grabs-2013#.UNMkMZakeSo

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$700 Billion is a pretty big number. Is this the current pool of "squaters" who aren't paying their mortgages? Is this the "shadow" inventory that that people are saying banks are keeping off the market and the houses banks won't foreclose on?

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Call it Crazy   Thu, 20 Dec 2012, 1:35am PST   Share   Quote   Permalink   Like (1)   Dislike (2)     Comment 1

Call it Crazy says

$700 Billion is a pretty big number. Is this the current pool of "squaters" who aren't paying their mortgages? Is this the "shadow" inventory that that people are saying banks are keeping off the market and the houses banks won't foreclose on?

Doing a quick back of the envelope calculation, $700B divided by the average $200K house = 3.5 million houses with unpaid principal balances.

This is only with the three GSE. How many more similar mortgages are sitting at the big banks?

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