Richard Syron, chairman and chief executive of Freddie Mac, has advised investors that the housing markets may be poised for "a relatively bumpy landing."Speaking on a conference call to update investors on Freddie Mac's first-half performance, Mr. Syron said weaker housing conditions will affect more than just credit performance, putting negative pressure on consumer spending and the economy as a whole. "In our minds it will have a substantial negative effect on GDP," he said. He also noted that there has been a shift away from "traditional mortgage products" into more esoteric loans, but he said Freddie Mac is "very comfortable with what we have in those markets." Through July of this year, interest-only loans constituted 14% of year-to-date loan purchases, but they only accounted for 3% of the total credit guarantee portfolio, the company said. Freddie Mac can be found online at http://www.freddiemac.com.

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