Rep. Richard Baker, R-La., wants to know why credit losses at Fannie Mae and Freddie Mac have declined over the past several years while the guarantee fees the two government-sponsored enterprises charge lenders have been relatively flat.The chairman of the House Financial Services GSE subcommittee has sent a letter to the Office of Federal Housing Enterprise Oversight asking the regulator to look into the issue. However, Rep. Baker's office has not released a copy of the letter despite repeated requests. At a July 13 hearing, Rep. Baker commented that Fannie's and Freddie's income from guarantee fees has "increasing dramatically," but their credit losses have declined because they are not helping "poor people." He also noted that the two GSEs have reduced their loan-loss reserves. Meanwhile, Rep. Baker plans to send a letter to the New York Stock Exchange, according to the congressman's spokesman, that raises questions about the criteria for keeping Freddie Mac's stock listed when the company is not filing regular financial statements with the Securities and Exchange Commission.

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