Housing Giants - August 11, 2008 - (Page 10) moves News & Moves By Jennifer Powell, Staff Writer Fannie and Freddie Will survive crisis While the degree to which the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corp. (Freddie Mac) should be backed by the federal government (and the American taxpayer) is a hot topic of debate on Capitol Hill, the leader of one high-powered housing industry think tank believes the two governmentsponsored entities (GSEs) will weather the current housing crisis largely intact. Richard Green, Ph.D., director of the University of Southern California’s Lusk Center for Real Estate (who once worked at Freddie Mac for a year), says the long-term lesson of the current housing crisis is that we really need these institutions, especially at times like this. “A few years ago, there was talk that the GSEs were irrelevant because the private sector was funding mortgages,” Green says. “But now, outside of Fannie and Freddie, the private sector has mostly gone away. The idea that we can keep liquidity in the mortgage market, in all periods, without institutions that are — in some sales Jobs First to Go Woodstock, Ga.-based Robert Harris Homes shut down, and the first to go was its sales staff in early July. The company reported it has been plagued with work stoppages because bills went unpaid, frustrating subcontractors and potential buyers. Restructuring debt failed. In a letter to his employees, founder Bob Harris said, “Over the last several weeks, management, shareholders and a capital restructuring firm have been working with our senior lenders on a revised debt program. It now appears that we are at an impasse on these negotiations and will seek other avenues of restructuring.” 10 HOUSING GIANTS.8.11.08 www.HOUSINGGIANTS.cOm http://www.usc.edu/schools/sppd/lusk/ http://www.fanniemae.com http://www.fanniemae.com http://www.freddiemac.com/ http://www.housinggiants.com
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