Real Estate Execs To Address Senate Committee

Washington, DC, February 28, 2008--Real estate executives are scheduled to testify at a Senate Finance Committee hearing Thursday, and one of the questions they will try to answer is whether the residential construction downturn will hit commercial building.

David Seiders, chief economist at the National Association of Home Builders, is among those scheduled to testify. His group is so upset with inaction in Washington that it cut off all contributions to Congressional office seekers.

NAHB wants lawmakers to modernize the Federal Housing Administration and reform Fannie Mae and Freddie Mac, the two largest sources of financing for U.S. home loans.

The Office of Federal Housing Enterprise Oversight, which regulates the government-sponsored Fannie and Freddie, said Wednesday it would loosen restrictions on the amount of mortgages they can hold on their books.

Prices for office buildings, malls and warehouses are expected to drop this year, but delinquency rates on commercial mortgages are low. However, it's not clear how the credit crunch might affect the industry.