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 August 13, 2007

CEO of Fannie Mae Says it Can Help Repair the Mortgage Crisis
Daniel Mudd, CEO of Fannie Mae, during an interview of CNBC August 9th, stated that his company could help relieve the current mortgage crisis. He wants to see Congress and industry regulators lift the current temporary limits on both Fannie Mae and Freddie Mac's mortgage portfolios which were instituted in the wake of their accounting crises.
Mudd argues that by doing so additional liquidity would be provided to the housing market. The company's (Fannie Mae's) mortgage portfolio is currently capped at $727 billion.

Mudd believes that there are currently borrowers from the subprime market that would now qualify for loans. He states that is what he is trying to do by providing additional liquidity where people have credit worthiness.

Mudd stated that Fannie Mae was built and equipped in order to provide long-term liquidity within the mortgage market. He feels that is precisely what the market needs right now.

The President has recently commented that there is a need for Congressional reform of both Fannie Mae and Freddie Mac's oversight before any changes are made to the temporary limits currently placed on both companies' mortgage portfolios.

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