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NAHB applauds Fannie Mae housing recovery initiativesMortgagePress.comNAHB, home builders, Fannie Mae, Keys to Recovery Initiatives, OFHEO The National Association of Home Builders (NAHB) has expressed its support 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, a home builder from Point Pleasant, W.Va. 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 utilize 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, NAHBs executive vice president and CEO. NAHB also welcomed the 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 the 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 (OFHEO), 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 nations hard-pressed home buyers and renters," said Dunn. For more information, visit www.nahb.org.