Dems Draft Substitute for Shelby Bill

Democratic members of the Senate Banking Committee have drafted a GSE regulator bill that could be offered as a substitute for the bill drafted by committee Chairman Richard Shelby, R-Ala., sources have told MortgageWire.Democrats have been complaining about provisions that would allow Fannie Mae's and Freddie Mac's new regulator to increase their capital requirements and place them into receivership if they get into financial trouble. Some Democrats also wanted to see provisions that strengthen the affordable housing requirements on the housing government-sponsored enterprises. "The receivership provisions in the bill raise significant concerns," said Sen. Jack Reed, D-R.I. "I am also disappointed that Senator Shelby's proposal does nothing to strengthen the GSEs' mission to expand affordable housing opportunities for low-income working families and increase homeownership, particularly amongst minorities." Meanwhile, the banking committee chairman is still pressing ahead with the April 1 mark-up of his bill. "We are moving ahead with the mark-up," a committee spokesman said.