Terms, Definitions, Clients
REO - Real estate owned by a financial institution that has been acquired by foreclosure, deed in lieu of foreclosure, or other legal proceeding.
REO Dpeartment - Division within a financial institution charged with overseeing the orderly disposition of REOs. Some financial institutions with smaller portfolioss handle the entire process in house. Most outsource all or a portion of th task to asset management firms and/or real estate brokers.
GSE - Government Sponsored Entity - The Federal National Mortgage Association (FNMA) also known as Fanie Mae; the Federal Home Loan Mortgage Company (FHLMC) also known as Freddie Mac.
Bank - Any mortgage bank, investment bank, direct lender, credit union, federal bank, savings & loan, GSE, government entity (HUD, VA) or lending institution or investor in the primary or secondary market and/or its related servicing operation that lends mortgage money or buys mortgage loans secured by real property.
Asset Manager - A firm and/or personel hired by a Bank to manage and market its REO assets.
Client - The person or entity that hiresus and to whom we owe a fiduciary duty; usually a bank or asset manager. As an REO agent, we usually work for an asset manager who represents a bank and who may handle huge portfolios for more than one bank.