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Future Shape of Fannie, Freddie Stirs Debate as Losses Mount

http://online.wsj.com Posted by SarasotaFLRealEstate 1278 days ago

Debate is heating up over the future of Fannie Mae and Freddie Mac as the two government-backed mortgage companies struggle with heavy losses and investors continue to shy away from their debt.

Fannie and Freddie "are teetering on the brink" as losses increase and borrowing costs rise, Jerry Howard, chief executive of the National Association of Home Builders, said in an interview.

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