Fannie Mae Cited for Efforts to Fix Housing Finance Problems
NAHB expressed support last week for steps recently announced by Fannie Mae to address severe problems in the nation's housing finance system.
"Fannie Mae is demonstrating the leadership expected of a government-sponsored enterprise with the rollout of its Keys to Recovery Initiatives and commitment to raise additional capital to support those and other responses to mortgage market challenges," said NAHB President Sandy Dunn.
The Keys to Recovery Initiatives are a series of new programs designed to increase liquidity and stability in the mortgage and housing markets.
Fannie Mae's decision to use the temporary increase in conforming loan limits to purchase jumbo-conforming mortgages under the same pricing structure accorded portfolio purchases of regular conforming loans will help home buyers in high-priced markets.
"The jumbo mortgage market is dysfunctional and in great need of active GSE involvement. Fannie Mae's portfolio purchases will help narrow spreads from the recent record highs, making home purchases more affordable in high-priced metro markets," said Jerry Howard, NAHB's executive vice president and CEO.
NAHB also cited other elements of Fannie Mae's Housing Recovery Initiatives, particularly the refinancing program for borrowers whose mortgage amount exceeds the current value of their home and its plan to purchase more loans from state housing finance agencies.
In addition, NAHB strongly endorsed Fannie Mae's commitment to raise additional capital, which was announced in a May 6 statement from the Office of Federal Housing Enterprise Oversight, Fannie Mae's regulator.
"Obtaining fresh capital is a critical step in moving the Housing Recovery Initiatives and other mission efforts from the drawing board to the housing market. NAHB looks forward to seeing these programs translate into results for the nation's hard-pressed home buyers and renters," said Dunn.
For more information, e-mail David Ledford at NAHB, or call him at 800-368-5242 x8265.
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Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown
What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.
To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.
To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.
For assistance, call the NAHB Member Service Center at 800-368-5242.