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.
