Outgoing housing director sees market stabilizing

Fannie Mae and Freddie Mac have refinanced 1.9 million mortgage loans this year through July, and James Lockhart, outgoing director of the Federal Housing Finance Agency, told MSNBC that he sees signs of stabilization in home prices and expects the market to become more stable as modifications continue. He said Fannie and Freddie are “bleeding” from bad mortgages made in 2006 and 2007. But he expects Fannie and Freddie to turn the corner within the next year and says the two companies are currently doing profitable business.