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Frank Predicts GSE Bill Passage

The House of Representatives can pass a GSE regulatory reform bill by April 2 when Congress leaves for its spring recess, predicted the new chairman of the House Financial Services Committee.

Chairman Barney Frank, D-Mass., said the new GSE bill will tighten regulation of Fannie Mae and Freddie Mac, but will not mandate a cut in their giant mortgage portfolios.

Essentially, the new bill will be similar to the GSE bill the House passed in the last Congress by a 331-90 vote.

Rep. Frank spoke at the National Press Club just before the new Congress convened last week. The Democrats are now in control of both the House and Senate.

Rep. Frank reiterated his support for a provision in the GSE bill that requires the two government-sponsored enterprises to contribute an equivalent of 5% of their profits to an affordable housing fund.

He told reporters the House bill would include an increase in the GSE loan limit, allowing Fannie and Freddie to purchase mortgages in high-cost areas of California and Massachusetts. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com