Fannie CEO Says GSE Will Speed Up Lending

Saying the U.S. housing recovery has a "long road ahead," the president of Fannie Mae indicated Wednesday that the government-sponsored mortgage giant will accelerate its funding in sales of loan-backed assets in an attempt to give lending a shot in the arm. "We're providing faster funding to lenders so that they get cash immediately after closing to continue funding loans," company President and Chief Executive Michael Williams told an audience of financial and political professionals at the Exchequer Club in Washington. "Previously, they had to wait a month or more for the MBS transaction to settle." The move is intended to support a warehouse lending market that has largely dried up in recent months of the recession. Williams told an audience questioner that while Fannie isn't interested in jumping into the warehouse lending market, the firm had an interest in increasing the rate and volume of loans in order to end the nation's credit crisis.
Williams took the occasion to offer his guarded optimism on the economic situation. "Anyone looking objectively at the economy and the housing market sees hope," he said. "The patient is out of intensive care, but still has a very long road ahead to a clean bill of health." In that vein, he disclosed that the GSE's regulating body â€" the Federal Housing Finance Authority â€" and the Treasury has solicited ideas from Fannie on how to support the warehouse lending industry. "If asked, we will do it," Mr. Williams said.