Troubled mortgage financier Fannie Mae plans to open sales offices in two of the hardest hit states in an effort to unload some of its REO properties.
The company plans to open two satellite offices, one in Ft. Lauderdale, Florida, and another somewhere in California, yet to be disclosed.
The aim is to reduce its growing inventory of repossessed homes in order to ease the burden on its flagging balance sheet as delinquencies in its mortgage portfolio continue to rise.
I did a quick search in Modesto, CA, one of the worst areas in terms of housing bubble, and it came up with 74 Fannie Mae-owned properties for sale, including a number of manufactured homes.
Fannie and Freddie have been stepping up efforts to reduce losses associated with soured mortgages, including payments to make loans current in the hopes they’ll work themselves out in the future.
Shares of the Washington, DC-based company were up 32 cents, or 7.27 percent, to $4.72, but remain nearly 25 percent lower than their trading price earlier this week.