FHA, GSEs seen as alternative to subprime

Wall Street investors not expected to return soon

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BOSTON — Delinquencies and foreclosures will continue to rise in 2008, keeping Wall Street investors who bankrolled subprime mortgage loans that fueled the housing boom on the sidelines, industry executives said Monday.

Until investor confidence returns, FHA guarantee programs and mortgage repurchasers Fannie Mae and Freddie Mac will have to fill the gap, was the oft-heard mantra at the Mortgage Bankers’ Association annual convention in Boston.