Statement from Jerry Howard, Executive Vice President and CEO of the ...

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Jerry Howard, executive vice president and CEO of the NationalAssociation of Home Builders (NAHB), today issued the followingstatement:

"Fundamental analysis and statements from top federal governmentofficials point out that the hysteria in the markets regarding theviability of Fannie Mae and Freddie Mac is unfounded. OFHEODirector James Lockhart, whose agency oversees the financial healthof Fannie and Freddie, stated that they are well capitalized, havelarge liquidity portfolios, continued access to the debt market andthe flexibility and sound operations needed to support their vitalhousing mission. Treasury Secretary Henry Paulson concurs,testifying this week before Congress that OFHEO has made clear thatFannie and Freddie are adequately capitalized and that they willcontinue to play an important role in our housing markets.

"Pundits who have questioned the viability of Fannie and Freddieare not operating on a factual basis, unnecessarily inflamingmarket fears. We are in an environment where sound analysis appearsto have been abandoned.

"The fact is that Fannie Mae and Freddie Mac remain a bulwark tothe nation's housing finance system and characterizations in themedia during the past week serve only to erode the public'sconfidence in the housing finance system at a critical juncture forthe economy.

"Now is the time we need to focus on passing meaningful housinglegislation. Industry and government must work together to help gethome buyers back into the marketplace, stabilize house prices, stemthe rising tide of foreclosures and restore confidence in ourhousing finance system. Fannie Mae and Freddie Mac play a centralrole in our housing system and will continue to do so."

ABOUT NAHB: The National Association of Home Builders is aWashington, D.C.-based trade association representing more than235,000 members involved in home building, remodeling, multifamilyconstruction, property management, subcontracting, design, housingfinance, building product manufacturing and other aspects ofresidential and light commercial construction. Known as "the voiceof the housing industry," NAHB is affiliated with more than 800state and local home builders associations around the country.NAHB's builder members will construct 80 percent of the more than1.08 million new housing units projected for 2008.