As of early November 2011, about 60 metropolitan areas each had at least 250 REO properties for sale by the GSEs and the FHA – a scale that could be large enough to realize efficiency gains.17 Atlanta has the largest number of REO properties for sale by these institutions, with about 5,000 units.
A similar link has been identified for other types of investors such as mutual funds (Choi and Kronlund, 2018), money market funds (Chodorow-Reich, 2014; Di Maggio and Kacperczyk, 2017), pension funds (ChodorowReich, 2014), and retail investors (Hau and Lai, 2016). 14. See Bundesbank (2022b).