Subprime mortgage servicers feel the effects of state foreclosure laws when they try to recoup losses though REO sales, a new working paper by the Office of Federal Housing Enterprise Oversight suggests. The OFHEO analysis entitled “Subprime & Prime Mortgages: Loss Distributions,” looked at foreclosure patterns on some 16,000 30-year fixed-rate loans purchased by Fannie Mae and Freddie Mac between 1995 and 1999.