The Federal Housing Finance Agency’s Office of Inspector General said it wants to ensure that Fannie Mae, Freddie Mac and their regulator are making the most of their real estate-owned policies given the expected increase in REO activities in the years to come. The FHFA-OIG’s audit report issued earlier this month noted that between 2007 and the end of 2011, the two GSEs have nearly tripled their REO inventories to nearly 180,000 units and their related expenses to $8.5 billion. “Given the ongoing delays in the foreclosure process and the financial distress in which millions of American homeowners continue to find themselves, the enterprises are likely to face elevated REO inventories and costs for years to come,” said the OIG.