A "bright line" test contained in a Senate bill on government-sponsored enterprises is drawing more opposition from housing-related associations because of concerns that it would "undermine" Fannie Mae's and Freddie Mac's automated underwriting systems."The bright line provision would undermine the state-of-the-art mortgage underwriting technology that has contributed significantly to the vibrancy, competitiveness and risk-management that are vital to the contemporary housing finance system," says a letter written jointly by six associations and sent to Senate Banking Committee leaders. The bright-line test, which is contained in a GSE bill (S.190) introduced by Sen. Chuck Hagel, R-Neb., is designed to clarify what activities are permissible under Fannie's and Freddie's government charters. The Independent Community Bankers of America, the National Alliance of Independent Mortgage Bankers, the National Association of Home Builders, the National Association of Realtors, and the National Community Reinvestment Coalition signed the letter.

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