WASHINGTON -- Fears that the woes of the housing industry arenot over were triggered Monday when shares of Fannie Mae andFreddie Mac fell to their lowest levels in 14 years.

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If the companies have trouble raising capital, it could impacttheir ability to purchase mortgages from credit unions and otherfinancial institutions. This could cause the housing loans toincrease and depress an already troubled market.

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The two companies, which have lost more than $11 billion in thenine months ending March 31, own or guarantee $5.2 trillion worthof home mortgages, about half of all outstanding loans.

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The Housing legislation currently pending in Congress wouldcreate stronger regulatory oversight over both companies.

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If Fannie and Freddie were to default on their obligations, agovernment bailout could be required.

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Fannie Mae's shares were down 16% at $15.74 at yesterday's closeof the New York Stock Exchange. Freddie's shares were down 17.9% at$11.91 yesterday.

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