One of Fannie Mae's staunchest allies, the National Association of Home Builders, is re-evaluating its relationship with the government-sponsored enterprise as a result of the accounting problems exposed by the Office of Federal Housing Enterprise Oversight."I am shocked and appalled that this has happened," NAHB chief executive Jerry Howard told MortgageWire. The NAHB's board of directors is meeting in Columbus, Ohio, this week, and they will be re-evaluating the trade group's position on Fannie Mae and Freddie Mac. The trade group has an obligation to defend the housing finance system, Mr. Howard said, but not necessarily the status quo. "The housing finance system is bigger than any single component," he added. Meanwhile, the NAHB has stopped all lobbying on behalf of the GSEs, including efforts to get the Department of Housing and Urban Development to compromise on its proposal to raise the GSEs' affordable housing goals. "Everything has been put on hold" until the directors have a chance to re-evaluate everything, Mr. Howard said. "That order came from me, specifically," he said.

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