Fannie Mae is a major player in the REO market.  It holds just under 100,000 repossessed homes and REOs according to the last reported quarterly statistics.

What is happening is that Fannie Mae is now accepting offers from Buyers without giving the loan servicers notice. In the past Fannie Mae would give Lenders 15 days to review the files and find a better offer if Fannie Mae got an offer after putting an REO on the market.  Now they are accepting first offers out of the shoot.

This will do a couple of things for the REO market.  It will heat up the competitiveness on an already hot REO market because more REO deals will be settled faster.  It will also mean that low offers will have a greater chance of acceptance.  More deals at lower cost for REO Investors!