Article: Mortgage bankers receive warning on investor-driven price increases.

Byline: Rick Jurgens

Oct. 26--SAN FRANCISCO -- Six thousand mortgage bankers, flush from the nation's biggest-ever wave of financing activity, gathered here Monday to hear news that wasn't nearly as sunny as the weather.

Franklin Raines, chief executive of Fannie Mae, a government-sponsored company that provides capital to home lenders, warned of signs of growing speculative activity in already red-hot housing markets.

Raines dismissed theories that see a national "bubble" of excessively high housing prices. Such dismissals have become virtually obligatory for industry leaders. But Raines warned that there could be trouble in some local ...

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