News Release

STATEMENT BY HUD SECRETARY STEVE PRESTON ON GOVERNMENT SPONSORED ENTERPRISES

WASHINGTON - U.S. Department of Housing and Urban Development Secretary Steve Preston today issued the following statement regarding the Government Sponsored Enterprises, Fannie Mae and Freddie Mac.

"Fannie Mae and Freddie Mac are vital sources of mortgage financing for millions of American families seeking to own or retain a home. Their roles have become even more critical as traditional sources of liquidity have become scarce. We must ensure their safety and soundness and provide stability to our financial markets. The plan announced today is a necessary step to ensure they continue to function effectively.

HUD's Federal Housing Administration and Ginnie Mae have grown dramatically in volume and market presence as borrowers seek safe, affordable sources of new mortgages and refinancing and the market looks to purchase securities that are safe. We are working to ensure FHA and Ginnie Mae can continue to safely handle increased volumes of mortgage insurance and mortgage-backed securities.

HUD will work closely with the Treasury Department and the Federal Housing Finance Agency to ensure that American families have access to safe, affordable financing for their homes."

###

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.