FannieFreddie Derogatory Credit: Would you outline the difference in underwriting rules between Fannie and Freddie when it comes to bankruptcy foreclosure short sales etc? Includes ChartChecklist Fannie vs Freddie - Waiting Periods for Derogatory Credit

FannieFreddie Derogatory Credit: Would you outline the difference in underwriting rules between Fannie and Freddie when it comes to bankruptcy foreclosure short sales etc? Includes ChartChecklist Fannie vs Freddie - Waiting Periods for Derogatory Credit

FannieFreddie Derogatory Credit: Would you outline the difference in underwriting rules between Fannie and Freddie when it comes to bankruptcy foreclosure short sales etc? Includes ChartChecklist Fannie vs Freddie - Waiting Periods for Derogatory Credit

FannieFreddie Derogatory Credit: Would you outline the difference in underwriting rules between Fannie and Freddie when it comes to bankruptcy foreclosure short sales etc? Includes ChartChecklist Fannie vs Freddie - Waiting Periods for Derogatory Credit

FannieFreddie Derogatory Credit: Would you outline the difference in underwriting rules between Fannie and Freddie when it comes to bankruptcy foreclosure short sales etc? Includes ChartChecklist Fannie vs Freddie - Waiting Periods for Derogatory Credit

FannieFreddie Derogatory Credit: Would you outline the difference in underwriting rules between Fannie and Freddie when it comes to bankruptcy foreclosure short sales etc? Includes ChartChecklist Fannie vs Freddie - Waiting Periods for Derogatory Credit

That ominous shadow inventory of distressed homes that's been hanging over the industry was cut back in July, according to Barclays Capital.

It marked the fifth straight month that the company has recorded a decline in the shadow supply. Barclays says it shrank 1.2 percent, to 3.92 million homes. At the same time, the firm's assessment of the nation's REO inventory ticked up 0.2 percent to 538,000 properties. The distressed share of home sales rose sharply in July, and Barclays says this will likely drive prices down 2 percent over the next three months.

The three versions of the homebuyer tax credit are expected to result in revenue losses to the federal government of about $22 billion, according to estimates from the Government Accountability Office (GAO).

According to Internal Revenue Service (IRS) filings through July 3, homebuyers so far have claimed $23.5 billion under the housing stimulus provisions. California ranks first among the states, with the most homebuyer tax credit dollars claimed.

A faction of House Democrats have called on Treasury Secretary Timothy Geithner and Fannie Mae's regulator to suspend the GSE's recently announced policy to sue homeowners who strategically default on their mortgage.

The group of lawmakers, led by Rep. John Conyers, Jr. of Michigan, called the policy "opaque, overbroad, and punitive." They decried Fannie for using taxpayer dollars to penalize underwater homeowners, and maintained that the policy runs counter to the national need to stem a devastating tide of foreclosures.

Posted To: Mortgage Rate Watch