More Needed to Reduce REO Inventory. The National Association of Realtors has called upon HUD, the FHFA and Treasury to create an advisory board to help them explore possible options for unloading real estate owned (REO) properties held by Fannie Mae, Freddie Mac and the FHA. We believe the government has an opportunity to minimize the impact of distressed properties on local markets by expanding financing opportunities, bolstering loan modifications and short sales efforts, and enhancing the efficient disposition of REO properties, said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, RI. This will help stabilize home prices and neighborhoods and help support the broader economic recovery. The Realtors also recommended the agencies be more aggressive in having loans modified and, when a family is absolutely unable keep their home, to quickly approve reasonable short sale offers that allow families to avoid foreclosure.