Expanded Fannie, Freddie Role Could Help Heal Housing: Fed

04-Jan-2012

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Mr. Gao co-found and became the CFO at Oxstones Capital Management. Mr. Gao currently serves as a director of Livedeal (Nasdaq: LIVE) and has served as a member of the Audit Committee of Livedeal since January 2012. Prior to establishing Oxstones Capital Management, from June 2008 until July 2010, Mr. Gao was a product owner at Procter and Gamble for its consolidation system and was responsible for the Procter and Gamble’s financial report consolidation process. From May 2007 to May 2008, Mr. Gao was a financial analyst at the Internal Revenue Service’s CFO division. Mr. Gao has a dual major Bachelor of Science degree in Computer Science and Economics from University of Maryland, and an M.B.A. specializing in finance and accounting from Georgetown University’s McDonough School of Business.

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An expanded role for government mortgage finance agencies could help heal U.S. housing markets, where lingering pain is undercutting economic recovery, the Federal Reserve said on Wednesday.

In a white paper to leading members of Congress, the Fed suggested fixes aimed at keeping the lid on the vast inventory of unsold homes, making it easier for borrowers to get credit, and containing an onslaught of foreclosures.

The Fed’s comments come as problems in the US housing market remain a major impediment to economic recovery. House prices have fallen an average of about 33 percent from their 2006 peak, resulting in about $7 trillion in household wealth losses and an associated ratcheting down of aggregate consumption.

Fannie Mae and Freddie Mac are expected to manage this onslaught of foreclosed properties, with new additions coming in.

Demand for existing homes, however, is slowly increasing. Data released in December showed a 7.4 percent monthly jump in contracts to buy them.

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