Fannie Mae recently trimmed the ranks of its outside REO managers, eliminating roughly six firms from its vendor ranks, according to industry officials close to the situation.
The GSE, which had not commented on the matter at deadline, now employs just three firms that manage REO and auctions, officials said. Two of the firms are minority-owned, these sources said.
One firm that lost its contract with Fannie is Green River Capital LC, West Valley, Utah. Joe D’Urso, president of the firm, confirmed to National Mortgage News that Fannie did not renew its contract with Green River.
D’Urso said Fannie put all of its REO contractors though a new ‘request for proposal’ process and then chose just three firms. “We weren’t selected and they didn’t give us any explanation,” he said.
Because of the lost contract, Green River was forced to trim some of its staff, D’Urso said.
Advisors close to the matter noted that Fannie’s goal is to conduct more of its REO management in-house.
