The mortgage market will remain healthy over the next decade, the CEOs of Fannie Mae and Freddie Mac said last month during the annual conference of the Mortgage Bankers Association in San Francisco.
Fannie Mae CEO Franklin Raines estimated that borrowers will demand $11 trillion to $14 trillion in mortgage capital over the next decade, while Freddie Mac’s Richard Syron predicted that U.S. mortgage debt outstanding will double in the coming years, resulting in 10 million new homeowners by 2013.
Raines and Syron said that minorities, which are expected to account for 80 percent of the population during the decade, will be a focus of their companies. Syron added that Freddie Mac is developing a new product focusing on A-minus credit risks to help “lift more families out of the subprime market.”