Obama aide: Fannie, Freddie woes reflect economy

WASHINGTON (Reuters) - U.S. presidential candidate Barack Obama's top economic aide said on Thursday that the difficulties facing mortgage giants Fannie Mae and Freddie Mac reflected the softness in the U.S. economy.

The stock prices of the two government-sponsored mortgage finance companies have been pummeled because of speculation over financial troubles.

"The challenges facing Fannie and Freddie are part of the broader weakness in our economy," Jason Furman, Obama's campaign economic policy director, said in a statement.

Furman said "willful neglect" by the Bush administration of warning signs in the housing, financial and job markets were to blame for the turmoil in the housing market.

"Obama believes we must maintain the flow of capital for mortgages and protect homeowners from foreclosure," Furman said.

Furman pushed the Illinois senator and presumptive Democratic presidential nominee's proposals to aid homeowners facing a risk of foreclosure.

"Obama believes Congress should act quickly to support homeowners facing foreclosure, limit the impact of the subprime mortgage crisis on our economy and strengthen the financial position of American families," Furman said.

(Reporting by Caren Bohan; Editing by Leslie Adler)