Fannie Mae preparing customers for more housing pain

Switzerland News.Net
Wednesday 21st May, 2008

The CEO of US housing lender, Fannie Mae, has told shareholders that the housing market is only halfway through its crisis.

CEO, Daniel Mudd, head of the largest US buyer and guarantor of home mortgages said home prices could fall quite a bit more before the worst is over.

At a shareholders at annual meeting in New Orleans, Mr Mudd said the company expects U.S. home prices to fall as much as 25 percent from their highs of mid-2005.

He said losses for Washington- based Fannie Mae from defaulted mortgages are also expected to worsen due to the housing market being in its most severe slump since the Depression.

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