34 Pledge to Nix GSE Bill if AH Fund Included

Thirty-four congressmen have pledged to vote against a GSE regulatory reform bill unless a provision creating an affordable housing fund is dropped from the legislation.The congressmen, mostly conservative Republicans, signed a "dear-colleague" letter that has been sent to Majority Leader Tom DeLay, R-Texas. The letter outlines their opposition to the affordable housing provision, which requires Fannie Mae and Freddie Mac to contribute 5% of after-tax profits to an AH fund. One source said more Republicans oppose the fund even though they haven't signed the dear-colleague letter drafted by Rep. Mike Pence, R-Ind. This opposition will likely force House Financial Services Committee Chairman Michael Oxley, R-Ohio, to modify the affordable housing provision before the government-sponsored enterprises bill is scheduled for a vote in the House. The Financial Services Committee approved the GSE bill on May 25 by a 65-5 vote. Rep. Ed Royce, R-Calif., tried to strip the affordable housing fund provision during the mark-up of the bill, but his amendment failed by a 53-17 vote.