California Gov. Schwarzenegger signs legislation to help protect homeowners from foreclosure

California Gov. Schwarzenegger signs legislation to help protect homeowners from foreclosure

July 10, 2008

NAHB EVP and CEO comments on Fannie and Freddie MortgagePress.comNAHB, home builders, GSEs, Fannie Mae, Freddie Mac, OFHEO Director James Lockhart, Treasury Secretary Henry Paulson
Jerry Howard, executive vice president and CEO of the National
Association of Home Builders (NAHB), has issued the following
statement on Fannie Mae and Freddie Mac: "Fundamental analysis and
statements from top federal government officials point out that the
hysteria in the markets regarding the viability of Fannie Mae and
Freddie Mac is unfounded. OFHEO Director James Lockhart, whose
agency oversees the financial health of Fannie and Freddie, stated
that they are well capitalized, have large liquidity portfolios,
continued access to the debt market and the flexibility and sound
operations needed to support their vital housing mission. Treasury
Secretary Henry Paulson concurs, testifying this week before
Congress that OFHEO has made clear that Fannie and Freddie are
adequately capitalized and that they will continue to play an
important role in our housing markets.
"Pundits who have questioned the viability of Fannie and Freddie
are not operating on a factual basis, unnecessarily inflaming
market fears. We are in an environment where sound analysis appears
to have been abandoned.
"The fact is that Fannie Mae and Freddie Mac remain a bulwark to
the nation's housing finance system and characterizations in the
media during the past week serve only to erode the public's
confidence in the housing finance system at a critical juncture for
the economy.
"Now is the time we need to focus on passing meaningful housing
legislation. Industry and government must work together to help get
home buyers back into the marketplace, stabilize house prices, stem
the rising tide of foreclosures and restore confidence in our
housing finance system. Fannie Mae and Freddie Mac play a central
role in our housing system and will continue to do so."
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