The National Association of Home Builders said it supports moves by government-chartered Fannie Mae to fix problems in the nation’s mortgage lending system.

"Fannie Mae is demonstrating the leadership expected of a government-sponsored enterprise with the rollout of its Keys to Recovery initiatives and commitment to raise additional capital to support those and other responses to mortgage market challenges," said NAHB President Sandy Dunn, a home builder from Point Pleasant, W.Va.

The initiatives are designed to make the housing market more stable and increase liquidity. They include applying recently approved temporary increases in standard or “conforming” loan limits to allow Fannie Mae to purchase larger “jumbo” mortgages under the same structure.

The move will help the nation’s high-priced home markets, NAHB officials said.

"The jumbo-mortgage market is dysfunctional and in great need of active GSE (government-sponsored enterprise) involvement. Fannie Mae's portfolio purchases will help narrow spreads from the recent record highs, making home purchases more affordable in high-priced metro markets," said Jerry Howard, the association’s executive vice president and CEO.

Officials said they also support government plans to raise additional capital.

"Obtaining fresh capital is a critical step in moving the housing-recovery initiatives and other mission efforts from the drawing board to the housing market,” Dunn said. “NAHB looks forward to seeing these programs translate into results for the nation's hard-pressed home buyers and renters.”