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"WASHINGTON — An REO, or “real estate owned,” refers to a kind of property owned by a lender, like a bank, after a foreclosure. An Oreo is a kind of delicious sandwich cookie.
In a House Financial Services Committee hearing on Tuesday morning, Secretary of Housing and Urban Development Ben Carson mixed the two terms up.
Rep. Katie Porter, D-Calif., was attempting to ask Secretary Carson about disparities in REO rates. According to Porter, Federal Housing Administration loans have far more properties that become real estate owned, than other loans from Fannie Mae or Freddie Mac.
“I would also like to ask you to get back to me, if you don’t mind, to explain the disparity in REO rates. Do you know what an REO is?” asked the congresswoman.
“An Oreo…” replied Carson.
“R, no not an Oreo. An R-E-O.” shot back Porter.
“Real estate?” asked Carson."*
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